Paper sold 5,000 LAMR Jul 55 Calls for $0.15 (3.9 times usual volume) with stock at $43.47
Paper bought 1,820 ARMH Jun 39 Puts for $0.60 (6.3 times usual volume) with stock at $41.30
Paper bought 100 CAH Jan 55 Calls for $0.40 (2.9 times usual volume) with stock at $46.00
Paper bought 5,000 XLY Jun 58 Calls for $0.09 (2 times usual volume) with stock at $55.63
Paper bought 20,297 Jun 36 Puts for $0.11 (5.6 times usual volume) with stock at $39.73

Ma has made it easier for investment procedures and is renegotiating trade talks with the US and China so he can revive his economic agenda. Cabinet member Cheng Li-wan said that, “We are introducing measures to bolster the economy as recent economic data failed to meet expectations.” Many insurers will invest in infrastructure that should total NT $100 billion. Also the new visa laws will make it easier for people from the mainland to come and visit, especially since the number of visitors is supposed to increase to 540,00 from 190,000.

The Trade:

Trade: Yesterday a trader sold 2650 July 13 Puts for $.16
Risk: $1284 per 1 lot
Reward: $16 per 1 lot
Breakeven: $12.84
Total Cash Received: $42,400

Greeks of this Trade:

Delta: Long
Gamma: Short
Theta: Long
Vega: Short
Directional Bias: This is a moderately bullish to neutral strategy

Unusual Option Activity:
We define unusual option activity as large block trades that represent a large percentage of daily option volume. The block trade is considered “unusual” if the option volume is above the average daily volume over the past 22 days. At KeeneOnTheMarket.com we scan and analyze order flow from all of the major options exchanges in order to identify any unusual option activity.

Analyzing unusual order flow gives traders a window into what the positions that large institutional players have. The majority of unusual option activity can be traced back to hedge funds, mutual funds, and other large institutions. Knowing where these institutions are placing their bets can be hugely advantageous for any trader. These institutions have informational and technological advantages that the average trader doesn’t have, and the amount of time and analysis that goes into every one of their trades is substantial. We offer this service through our 7 hour daily LIVE trading room http://bit.ly/135QWt8 or through Premium Twitter feed with all entries, exits, and unusual options activity tweeted all day long: http://bit.ly/11f0L9u .

Order flow can however at times be deceiving. One might logically thing that a large block buyer of calls is bullish on the underlying. This is not always the case. Remember that a large number of participants in the equity options market are hedgers. Long calls are a hedge against short stock, and long puts are a hedge against long stock. With this in mind we have developed a 7 step trading plan that helps filter out unusual option activity that will not provide actionable trade setups. It is by using this plan that we are able to identify the most significant unusual options activity trades every day.

There is no doubt the sentiment of AAPL’s shareholder base is sour, but the future is probably bountiful as consumers will likely pick tons of AAPL products. Away from the fundamentals for a moment, AAPL’s technical picture seems compelling for a variety of reasons.

The stock has recently reclaimed its 50 and 100 DMA from the bears. The two averages are now moving horizontally, a positive change from the negative slope they had previously. Additionally, according to Ichimoku Cloud analysis, Span A is above Span B for 81% of the prognosticated future price action bias. There are only 5 more days of negative cloud (Span A under Span B). The stock has grinded 2.5% higher after fighting up and through the negative cloud and yesterday’s low was precisely at the turning line or Tenkan Sen…respecting the study.

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