How to Track Options using an Interval Flow Filter for $500K OTM Call Buyers on Unusual Whales — Transcript

Full transcript

1. 0:07all right it's 8:20 a.m. Chicago time on
2. 0:11December 24th Merry Christmas Eve to
3. 0:14anyone who is
4. 0:16celebrating and with a few minutes here
5. 0:19before Market open I want to review the
6. 0:23interval flow results from the $500,000
7. 0:27out ofthe money call buyer interval flow
8. 0:31filter that we set up in the latest
9. 0:34article so what I'm going to do is Click
10. 0:38from from flow data I want to go to
11. 0:40interval
12. 0:41flow and I want to select 500k otm buyer
13. 0:46stock only if it's not already
14. 0:50selected and what I'm going to do is I'm
15. 0:53going to make sure that I'm looking at
16. 0:56yesterday's flow interval flow criteria
17. 1:01trades right so I want to make sure that
18. 1:04I pick this from the drop
19. 1:06down and I like to work from the top to
20. 1:09the bottom so let's go ahead and get
21. 1:12started with this TSM 207 and a half
22. 1:15call for the first expiry in
23. 1:19January so I take a look definitely a
24. 1:23big trade that went off remember the
25. 1:25first thing I like to check here is that
26. 1:27the at least the the majority of the
27. 1:29open interest stuck around it looks like
28. 1:31it did I'm going to take a quick glance
29. 1:34here to
30. 1:36see and I'll dial that up to
31. 1:39250 Okay cool so it looks like at about
32. 1:44228 Chicago time we had these these big
33. 1:48these big trades go off and they filled
34. 1:51very close to the ask and so that's kind
35. 1:54of interesting especially being so
36. 1:56short-dated and with how performant uh
37. 1:59chips were yesterday you can just see
38. 2:02yesterday it looks like TSM these
39. 2:03contracts were trading for uh
40. 2:07$150 um at the at the close on Friday
41. 2:10and then by the time we got to uh by the
42. 2:14time we got to Monday they were trading
43. 2:15for 261 all the way well above up to $5
44. 2:19and I think what's interesting here is
45. 2:21that this buyer came in at the end of
46. 2:23the day so this is not a not a Buy Low
47. 2:28type here it looks like this is is kind
48. 2:30of a momentum trade if I had to guess
49. 2:32because the value of this contract has
50. 2:35already um geez it's it's already kind
51. 2:38of doubled here so um the fact that this
52. 2:41contract has doubled did not slow this
53. 2:44this Trader down these were purchased
54. 2:47into the into the the last half hour of
55. 2:50the day at an average fill of 528 when
56. 2:53they were trading
57. 2:54for 261 in the first 10 minutes of the
58. 2:58day so that's pretty interesting to me
59. 3:00I'm going to add this to my bookmarks
60. 3:03watch list and I'll move on to the next
61. 3:07one Johnson and Johnson 155 call for
62. 3:12June looks like they came
63. 3:14in at pretty pretty significant size
64. 3:1813,000 Plus on this on this
65. 3:22trade they were all filled in this one
66. 3:24period which is to be expected that's
67. 3:26how interval flow works I like to click
68. 3:29and take a look expand it out to
69. 3:33250 and what I'll do is just kind of
70. 3:37scroll my way down make sure that these
71. 3:40started off at the ask it looks like
72. 3:43they did and then okay yeah then one big
73. 3:46one big trade filled at $410 for the
74. 3:50vast majority of that volume and it
75. 3:53stuck it's it's stuck around overnight
76. 3:55so I want to add this one to my
77. 3:58bookmarks list as well
78. 4:04okay now we've got a an FCX 45 call for
79. 4:15June yep 25,000 plus stuck around into
80. 4:19open interest I want to take a look here
81. 4:23make sure that the first that the first
82. 4:26trades were going off at the ask and it
83. 4:28continued to go off at to ask okay so
84. 4:30here's our big trade the vast vast
85. 4:32majority went went off in this one
86. 4:35transaction at about 116 Chicago time
87. 4:39and leading up to then these these
88. 4:42trades were all going off at the at the
89. 4:45ask as well so I can I can pretty
90. 4:48confidently say that this was that this
91. 4:50was buying behavior and this one big
92. 4:53clip went off all in one shot and should
93. 4:56be no surprise I think this one is
94. 4:58interesting as well well and so I'm
95. 5:00going to add this one to my
96. 5:06bookmarks all righty let's look here
97. 5:09much shorter dated here over the next
98. 5:11the next uh the next group so qualcom
99. 5:14we've got a 15
100. 5:16157.5 call for the Jan
101. 5:20Opex okay this is a little more
102. 5:24interesting obviously there was one one
103. 5:26big fill over here but it looks like
104. 5:29there was kind of just consistent buying
105. 5:32throughout the day or perhaps there was
106. 5:34consistent trading on this contract
107. 5:35throughout the day followed by some
108. 5:38larger transactions around
109. 5:40lunchtime and we can we can see clearly
110. 5:44almost all of this open interest stuck
111. 5:46around so that's uh that's definitely
112. 5:48very interesting it would it would seem
113. 5:51like a like a Trader was working into
114. 5:55this position rather than getting the
115. 5:57whole thing off in one single trade and
116. 5:59and this is always interesting to me
117. 6:02again I know yesterday semiconductors
118. 6:04had a great had a great update the
119. 6:06average fill on this contract increased
120. 6:09from
121. 6:10$4.60 early in the uh early in the cash
122. 6:14session and was all the way up closer to
123. 6:18closer to $6 into the into the the
124. 6:22closing 10 minutes
125. 6:24so this one I'm going to I'm going to
126. 6:27put on hold because this is a little bit
127. 6:29harder to a little bit harder to ascribe
128. 6:32but I am going to take a look at this
129. 6:34first
130. 6:35group to make sure that those first
131. 6:38transactions were going off at the ask
132. 6:40if if
133. 6:41possible okay interesting so it looks
134. 6:43like these were part of a
135. 6:48spread okay very interesting so this was
136. 6:54calendarized looks like maybe a could be
137. 6:57a could be a roll could be a diagonal
138. 7:00that
139. 7:01is that's not as clear as I would really
140. 7:04like it to be so I'm just going to move
141. 7:06on and though this qualcom might be a
142. 7:08great trade I'm just going to skip it
143. 7:11and I'm going to move on to these last
144. 7:13two here so the first one first solar
145. 7:16190 call for this upcoming Friday so
146. 7:19very short dated with
147. 7:23size and I want
148. 7:26to confirm yep the certainly certainly
149. 7:30quite a bit of that stuck around into
150. 7:32into open interest I like to take a look
151. 7:35at 3 days if I can to see how the
152. 7:37contract price
153. 7:39moved and it looks like the vast
154. 7:41majority came off in this in this
155. 7:4410-minute period but perhaps the trade
156. 7:47actually started a little bit earlier
157. 7:48where I see this this column start to to
158. 7:51perk up and a lot of these went off on
159. 7:53the bid so I'm going to because you can
160. 7:55see that they're red compared to Green
161. 7:58so this is what I like to do I want to
162. 7:59take a look at this first chunk and then
163. 8:03I'll take a look at the second chunk
164. 8:05after that so I start on my first chunk
165. 8:09I expand my results to 250 going to give
166. 8:13myself a little bit of extra room to
167. 8:16read these and okay so as I'm scrolling
168. 8:19all the way
169. 8:21down the this this period didn't really
170. 8:25see this was kind of intermittent
171. 8:27trading happening but at
172. 8:30at
173. 8:319:22 and 12 seconds so so pretty early
174. 8:35in the session is when I started to get
175. 8:36a lot of a lot of fills happening and
176. 8:40these are
177. 8:41overwhelmingly on the bid so this is
178. 8:45perhaps some call
179. 8:49selling and it looks like this was this
180. 8:52was the the behavior pretty
181. 8:54consistently there for for this period
182. 8:57of time again we're seeing seeing it
183. 8:59kind of shift around as the bti ass
184. 9:01spread moves it looks like the the bti
185. 9:03ass spread is kind of wide like 20 26 27
186. 9:07cents 26 Cents something like that and
187. 9:11what I want to take a look at
188. 9:13now move those filters out of the way
189. 9:16grab
190. 9:18250 so then then 10 minutes later when
191. 9:21we start to get a lot of Trades filling
192. 9:24right on the
193. 9:26ask and then they continue to fill the
194. 9:29ask had a couple big ones fill right on
195. 9:32the ask H this one this one I'm I'm a
196. 9:37little bit up in the air on it's not
197. 9:38that it's not extremely clear uh
198. 9:41especially since those first trades were
199. 9:43were going off on the bid But as time
200. 9:46went on they started to fill at the at
201. 9:49the ask so I'm going to just kind of
202. 9:51leave this one in the maybe in the maybe
203. 9:54pile and finally now this 190 call for
204. 9:57the Jan op effect I want to take a look
205. 10:00for First
206. 10:01Solar
207. 10:03okay not all the open interest stuck
208. 10:06around but if a fair amount which is
209. 10:09interesting I want to take a look here
210. 10:12at this first big big column make
211. 10:18sure and let's go ahead and work our way
212. 10:22down okay great so this one's a little
213. 10:24more clear these trades started to go
214. 10:27off around around the same same time
215. 10:29actually as the 190 for for this
216. 10:32upcoming week so perhaps we're seeing a
217. 10:34roll or a calendar of some kind just
218. 10:38just seeing this Trader leg leg into it
219. 10:40and not execute it through the complex
220. 10:42order book and these are pretty these
221. 10:45are pretty clear they're going off right
222. 10:47at the ask the bid ask spread is wide so
223. 10:52I would I would be a little more
224. 10:53hesitant to ascribe this to to buying if
225. 10:57the bid ass spread wasn't as wide and
226. 10:59going off right on the right on the as
227. 11:01price so this is pretty pretty clear
228. 11:04pretty clear Behavior buying you know
229. 11:06urgent buying Behavior if you will uh so
230. 11:09it looks like this 190 for
231. 11:11January is a is a a call buyer getting
232. 11:16some getting some siiz on and so that I
233. 11:19do find interesting and so I'm going to
234. 11:22add this one to my bookmarks watch list
235. 11:26as well and then since I know I'm at the
236. 11:29the end of my list I will check the end
237. 11:31of my my bookmarks um options watch list
238. 11:35and I will take a look at the
239. 11:38performance as the as the trading
240. 11:40session continues so so the bell rang a
241. 11:44couple minutes ago and you can see I'm
242. 11:46starting to get updates to the
243. 11:48underlying price and and potentially
244. 11:52depending on whether or not contracts
245. 11:54are trading in in this particular expiry
246. 11:58and and strike
247. 12:00I'll start to see updates on these
248. 12:01prices as
249. 12:03well if you have any questions about
250. 12:06setting up interval flow filters or
251. 12:10interpreting the results please do not
252. 12:12hesitate to ask we have a great and very
253. 12:14active questions group inside the inside
254. 12:18the Discord and you can always reach me
255. 12:21at Dan unusual whales.com thanks so much