Sometimes, I miss trades, because I am at a meeting, on the phone or away from my desk. Every Morning when I wake up the first thing I do is turn on CNBC. I watch to see the stocks that are moving in pre-market trading. I saw GMCR has been on fire on a possible short and squeeze. So, then I went to my Unusual Options Activity scanner and noticed a trader bought 5517 GMCR April 55 Calls for $.96. This was the biggest order over the last 10 trading days. Let me show a breakdown of how much money this trader made.
Paper bought 5517 April 55 Calls for $.96
(Paper is an order from a hedge fund, mutual fund, retail bank, or BIG trader)
Risk: $96 per a lot
Reward: Unlimited
Breakeven: $55.96
Cash Outlay for this Trade: $529,632
Greeks of this Trade:
Delta: Long
Gamma: Long
Vega: Long
Theta: Short
On 3.11.2013, these Calls are worth $2.50, so lets breakdown this
trades Profits.
$2.50- $.96 * 100 * 5517= $849,618
If a trader risked $1,000 on this trade and bought 11 Options they would have netted $2,500
If a trader risked $5,000 on the trade and bought 55 Options, they would netted $12,500
This is just another example of trading with the BIG money and Hedge funds in the BEST Live Trading Room http://bit.ly/108XTgh as I breakdown over 2,000 trades in a day and also tweet them on our Premium Twitter feed http://bit.ly/WmtfI4
By the way, SEC leave those HNZ traders alone.
