No matter the level of volatility, the more experienced traders and investors rely on several notions and proven tactics for consistency. One of the more fundamental and tactical approaches to trading is monitoring large equity and option trades.
Within the last several trading days, market participants have witnessed option activity and interesting market chatter on PayPal (PYPL). Although not a definitive indication of future price action and volatility, option activity tends to correlate to the underlying equity.
This week The TradeXchange has detected notable activity involving different strategies. Activity was detected at the beginning of the week in Mar 38 Calls and March 34 Puts on the Bid side. The Bid side Put Sales totaled more than eight thousand contracts. As a brief tutorial, Call activity on the offer and Put activity on the bid side tend to indicate a bullish indication on the part of the trader. The TradeXchange continued to monitor the equity and option activity on Tuesday as Mar 37 Put Activity on the Bid was detected. Tuesday’s Put sales totaled more than then thousand contracts.
Wednesday’s trading involved desk chatter involving PYPL and American Express (AXP). Although unconfirmed, this information fueled price action and volatility in the security. Desk chatter should be approached with caution as this information is typically unconfirmed.
The TradeXchange will continue to monitor activity in PYPL in the coming weeks for options activity, unique price action, and analyst opinions.
