Two Unusual Options Trades in $KWEB Combine for over $5 million in profit! — Transcript

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1. 0:03hey everyone Nicholas from the unusual
2. 0:05whales team here and in this flow review
3. 0:08we're going to be looking at some
4. 0:09unusual options activity on ticker
5. 0:13kweb that hit the tape in late January
6. 0:16then we're going to take a look at a
7. 0:17follow-up trade on a different strike
8. 0:20and expiration date now to start us off
9. 0:22here way back on January 16th this giant
10. 0:26green volume bar here hit the tape good
11. 0:28and hard in the afternoon noon now after
12. 0:31clicking that green volume bar we can
13. 0:32see the flow on the 16th as it appeared
14. 0:36when it hit the tape orders were coming
15. 0:38in at the ask first at that 231 to 232
16. 0:42per contract then as that bid ask spread
17. 0:46started to rise as did the fill prices
18. 0:49234 234 all the way up to 242 per
19. 0:53contract now what we'll do is we're
20. 0:55going to click on the expiration date
21. 0:57and I'm going to set this date way back
22. 0:59to the 16th when this happened so we can
23. 1:02see the flow as it appeared setting this
24. 1:04back to one day view the first set of
25. 1:06orders hit in the morning for around
26. 1:088,000 contracts at that
27. 1:11$2.34 per contract that we looked at and
28. 1:14throughout the day they kept getting
29. 1:16tapped all at the ask all said and done
30. 1:20on this position they had an average
31. 1:22fill of 240 per contract for that entire
32. 1:2750,000 contracts and we can see here
33. 1:29that that carried over into our open
34. 1:31interest the next day we have a massive
35. 1:33new position here and again the
36. 1:35importance of open interest and volume
37. 1:38obviously in hindsight there's
38. 1:41significantly more volume than open
39. 1:44interest I mean we've got almost 50,500
40. 1:46volume on only 4,200 open interest now
41. 1:51that said we were pretty sure right away
42. 1:53in the morning this transaction alone
43. 1:56this 8,000 contracts was almost double
44. 1:59the amount of open interest so yeah we
45. 2:00knew before the end of the day before
46. 2:02the oi carryover that we had new
47. 2:04positions here now on our historical
48. 2:06volume table here we can see that this
49. 2:09position stayed open there was no
50. 2:11evidence of an exit we had 167 contracts
51. 2:14on the 17th 555 transacted and then
52. 2:17actually stayed open on the 21st to the
53. 2:1922nd there was no considerable action on
54. 2:22this contract until January
55. 2:2528th now you may recall an article we
56. 2:28wrote about Traders capitalized on the
57. 2:30Chinese stock frenzy at the end of 2024
58. 2:33and it does appear that some of that
59. 2:35hype hasn't really cooled off yet
60. 2:37because kweb continued to climb in the
61. 2:40coming days here on this chart we can
62. 2:42see the Traders entry on
63. 2:45116 and they held this position all the
64. 2:47way up until January 28th and by then
65. 2:50kweb has traded as high as
66. 2:53$310 per share and then in the afternoon
67. 2:56of the 28th when kweb traded at
68. 2:58$3.69 the this Trader finally pulled the
69. 3:01trigger on their profits we can see that
70. 3:03by bringing our date right back to
71. 3:06modern times I'm going to flip this to a
72. 3:1030-day View and you can actually see it
73. 3:12crystal clear here here's their entry on
74. 3:14the
75. 3:1516th here's their exit on the 28th but
76. 3:19just for posterity sake let's go ahead
77. 3:21and click on that Big Red Bar to look at
78. 3:23the exits and lo and behold here all of
79. 3:25the transactions on the 28th for that
80. 3:2850,000 volume that we saw transact are
81. 3:31coming in at the bid here we have a bid
82. 3:33as spread of 310 and 315 and these are
83. 3:36all filling at 310 and they continue to
84. 3:39do so as the day moved along now back
85. 3:43here in our historical volume profile
86. 3:46the exit on the 28th right here and we
87. 3:50see that open interest drop off these
88. 3:54contracts are now gone for an average
89. 3:57fill price of 314 per contract that
90. 4:01means from their initial entry at 240
91. 4:03per contract or a total premium of $12
92. 4:06million on the entry this Trader closed
93. 4:09out for a 30% gain for a profit of
94. 4:12$3.5
95. 4:14million and just again here is that
96. 4:17historical volume profile down here at
97. 4:19the bottom we've got their entry at 240
98. 4:24and then up here on the 28th we've got
99. 4:26their exit at 310
100. 4:30and now you may notice on the far right
101. 4:32here of the volume profile this Trader
102. 4:34left quite a bit of money on the table
103. 4:37but a 30% win is a 30% win and this
104. 4:41isn't the only K web position we're
105. 4:43looking at so I'm going back to my
106. 4:45contract lookup and we're going to look
107. 4:47at the kweb $36 call for May 16th of
108. 4:512025 this time literally at the same
109. 4:54time on the 28th that that $32 call
110. 4:58closed we saw an entry of 30,000
111. 5:01contracts on the kweb $36 call expiring
112. 5:05in May and full contract carry over into
113. 5:08the open interest once again here's our
114. 5:10entry on the 28th All ask side fills for
115. 5:14the full 30,000 contracts once again we
116. 5:18had ascending fills from that 135
117. 5:20initial fill on the contract all the way
118. 5:23up to 143 per contract as the bid ask
119. 5:27spread rose again at the time of phills
120. 5:29we only had 2400 open interest so we are
121. 5:32very certain that this volume is new
122. 5:35positioning all said and done they had
123. 5:37an average fill on that day of 140 per
124. 5:42contract now looking at our kweb chart
125. 5:45again here is our Traders entry on the
126. 5:4828th and as you can see the kweb
127. 5:50trajectory just continued on up and to
128. 5:53the
129. 5:53right this Trader held on to their
130. 5:56position until February 10th here in our
131. 6:00historical volume breakdown we see once
132. 6:03again the initial entry on the 28th here
133. 6:06and then all the way on the 10th we've
134. 6:09got that similar volume transacting our
135. 6:12first orders came in at the ask these
136. 6:14transacted at the bid when you see
137. 6:17similar sizing like that days later it's
138. 6:20a pretty good indication that it's the
139. 6:22same Trader now you might notice that of
140. 6:24this 32,000 contracts that transacted on
141. 6:27the 10th only 25 500 of that carried
142. 6:31over into a drop of the open interest
143. 6:34this doesn't mean that the Trader didn't
144. 6:36exit often times this means that those
145. 6:38contracts traded hands so a different
146. 6:40Trader is now in a position on that
147. 6:43contract but our initial Trader is out
148. 6:46here again we see our entry in the
149. 6:48volume profile and then crystal clear on
150. 6:50the 10th we've got that 30,000 contracts
151. 6:53at the bid for a beautifully easily
152. 6:56tracked in and out
153. 7:00now there is no guarantee at all that
154. 7:03both of these positions are the same
155. 7:06Trader that said the timing is kind of
156. 7:09interesting because after that first
157. 7:11position here on the $32 contract closed
158. 7:15we right away have an entry on the $36
159. 7:19contract and not only that both
160. 7:21positions did miss the rest of the move
161. 7:25but they were both good examples of base
162. 7:27hits both of these trades ended up
163. 7:30profiting roughly 30% in profit which is
164. 7:33a good haul 30% base hits that's a great
165. 7:37trade and the reason that I personally
166. 7:39speculate that it might have been the
167. 7:41same Trader legging into a new position
168. 7:43is because of that almost identical
169. 7:46profit Tak Mark but all that said folks
170. 7:48I hope that this helps you understand
171. 7:50how we track trades and I hope you guys
172. 7:52like when I do these flow reviews let me
173. 7:54know in the comments if there's anything
174. 7:56else you'd like to see and as always
175. 7:57everybody thanks for your time and I
176. 7:59hope you have a great rest of your week
177. 8:01I'll see you guys in the next one