😱🚨SOMEONE FRONT RAN FootLocker $FL and Dick's $DKS Acquisition News! Someone ALWAYS knows?🚨😱 — Transcript

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1. 0:03Another day, another unusual trade.
2. 0:07Shortly after close yesterday,
3. 0:09Wednesday, May 14th, it was announced
4. 0:11that Dicks Sporting Goods had expressed
5. 0:13interest in buying out Foot Locker.
6. 0:15Naturally, being curious, I went to take
7. 0:17a look to see if anything stood out in
8. 0:19today's options flow. And as a matter of
9. 0:21fact, we do have some activity that I
10. 0:23want to go over. Now, I want to preface
11. 0:25this by saying that of course it's
12. 0:27easier to see this flow after the fact,
13. 0:30but being able to see it at all will
14. 0:32help you prepare to potentially spot it
15. 0:34next time. The big spy calls that we
16. 0:36went over in our last video were seen by
17. 0:38members in the Discord server as they
18. 0:40took place. So, I want to see what
19. 0:42contracts are being traded the most for
20. 0:44Foot Locker yesterday. So, I hopped over
21. 0:46to the options screener right here,
22. 0:48which shows me data on all options
23. 0:50activity. I'm currently looking at
24. 0:53yesterday's activity. So, I can see that
25. 0:55the 10 put expiring in January and the
26. 0:5915 call expiring in June had a lot of
27. 1:02flow yesterday, totaling 80% of all Foot
28. 1:06Locker options activity and totaling 12%
29. 1:10here. Let's start with the 10P expiring
30. 1:13in January
31. 1:141st. This is yesterday's activity right
32. 1:17here. Not the cleanest look, but we do
33. 1:19see 15,000 puts being
34. 1:22opened. So, naturally, the question here
35. 1:25is, did someone sell to open 15,000
36. 1:27puts? Reminder that selling to open a
37. 1:30put is a bullish/neutral position. This
38. 1:33position actually looks like it got
39. 1:35closed out just about an hour ago. And
40. 1:38if that's the case, that would be an
41. 1:39overnight realized gain of approximately
42. 1:421.6 6 million receiving 1.15 to write
43. 1:46one put and buying it back for a mere
44. 1:500.1. We should see open interest drop
45. 1:52pretty significantly
46. 1:54tomorrow. Now let's hop over to the
47. 1:57calls. I want to direct your attention
48. 1:59to the historical data on this contract.
49. 2:02You can see that
50. 2:05yesterday, April
51. 2:0830th, as well as April 10th, large ask
52. 2:12side
53. 2:16flows accompanied by an increase in open
54. 2:19interest the next
55. 2:21session. Also of note, all these flows
56. 2:23were predominantly single
57. 2:26leg. So these contracts were filled. So
58. 2:29we have a fill at 90 here, 60 here, 69
59. 2:34average
60. 2:35here. So with the buyout price being
61. 2:38$24, the contracts have an intrinsic
62. 2:40value of nine
63. 2:42per. We can see the position being built
64. 2:45up here on the chart. April 10th, April
65. 2:4830th, and then of course
66. 2:51yesterday, April 10th's fills seen here
67. 2:53at 90.
68. 2:56April 30th seen here at
69. 2:5960 and yesterday seen here at
70. 3:0269 with a high of 872 today. Last close
71. 3:07being 850. If we estimate that the
72. 3:10trader has 7,000 calls and their cost
73. 3:12basis is slightly over
74. 3:14500,000. The position is now valued at
75. 3:176.3 million. I think it is safe to say
76. 3:21that someone always knows.