Someone Always Knows: Massive Options Bets Hit Before Block $XYZ S&P500 Inclusion! — Transcript

Full transcript

1. 0:06Welcome back to the unusual wells
2. 0:08YouTube channel. Square block XYZ,
3. 0:11whatever you want to call it, going to
4. 0:13the S&P 500. A name completely out of
5. 0:16left field, leaving Apploving and Robin
6. 0:18Hood investors sorely disappointed once
7. 0:21again. Close to a 9% move after hours on
8. 0:24Friday. A couple interesting flows to
9. 0:26look at here. First, the 80 strike calls
10. 0:29expiring in December. Large flows on
11. 0:32Thursday, July 17th,
12. 0:35which were confirmed by open interest
13. 0:36the next session.
14. 0:40There were some flows back in May as
15. 0:42well. The open interest on Friday
16. 0:45increased by such a large amount that
17. 0:46effectively none of the contracts opened
18. 0:48back in May were quote unquote handed
19. 0:50off.
20. 0:53So, we know that's a pretty large
21. 0:54position here. maybe 3,500 or so
22. 0:56contracts.
23. 0:58How about the August 8th 80 strike
24. 1:01calls?
25. 1:03Activity first spotted on Thursday at
26. 1:06around 100 p.m.
27. 1:08I wish I could tell you exactly what
28. 1:10we're looking at here. I really wish I
29. 1:13could. What's open interest going to be
30. 1:15like tomorrow? 5,000 give or take? What
31. 1:18do you think? Lastly, the 50 strike
32. 1:21September calls shared back in May.
33. 1:24Let's pull it up in the contract lookup.
34. 1:27We can see several large candles here.
35. 1:29The only two relevant ones are this one
36. 1:32and this one. So, let's look at the
37. 1:34historical volume in open interest.
38. 1:38So, we see 1,500 contracts one day,
39. 1:42sizable increase in open interest, 1,000
40. 1:45contracts, another session with
41. 1:47effectively a thousand uh additional
42. 1:50contracts traded right there.
43. 1:53So on the 9th these are traded at 685.
44. 1:57On the 21st of May these are traded at
45. 2:0010:11.
46. 2:02So these will have an intrinsic value of
47. 2:03like $30 give or take depending on where
48. 2:06XYZ opens tomorrow morning and then uh
49. 2:10imagine just two more months of
50. 2:12exttrinsic value. And yeah, these should
51. 2:14be up quite handsomely tomorrow.
52. 2:17Included in your options flow
53. 2:19subscription is access to our Discord
54. 2:21server. subscriber only channels where
55. 2:23flows like this and many more are shared
56. 2:26every day live. Until next time, have a
57. 2:28good rest of your day and always follow
58. 2:31the flow.