Today, April 20, 2022, among the underlying constituents of the NYSE, we observed unusual or notable options trading volume and activity in JMIA 8 C 04/22/2022:
- It was one with a volume of 3047 with OI down from yesterday.
- Before the stock rallied 8% from the lows, those big $8 contracts entered.
- Worse still, it seems that the trader was loading the news in preview.
- The news from $JMIA arrived around 1:48 p.m. EST.
- At 1:32, the largest $JMIA transactions took place (1st image)
- The trader was targeting $8 JMIA, two days before expiry. $JMIA bounces 8% off the lows, trader +40%.
- In the 2nd picture you can see the exact moment when the trader loaded the news. Who knew?
Above are the notable options in ESSC from the Unusual Whales stream.
You can see for each bearish position, the volume was above the open interest (hence the exclamation mark)
Additionally, these orders were momentarily seen in the new Unusual Whales Hottest Chains tool as well as the Flow Dashboard, followed by significant bearish flows.
Many people were selling JMIA calls on the bump.
As mentioned, these commands were marked as a “sweep”. An options sweep (or fill sweep) occurs when a broker divides an order into several parts in order to obtain the best possible prices currently offered in the market.
These orders can often be executed on multiple exchanges and the broker will continue to execute the order lot by lot, always at the best possible price, until the order is completely executed.
Sweeps can stand out because they imply that one or more entities wanted to enter into specific options contracts regardless of their price, because they were only focused on having their entire bulk order executed the most. quickly as possible. While the magnitude of the swipes may stand out, each should be studied thoroughly to understand how a trader feels about the overall flow.
Shown above is the historical volume of the aforementioned channel, in red, and open interest, in blue, as bar charts behind the required supply and demand, in a light blue and darker shade, respectively. .
To view more information about JMIA’s daily feed breakdown, click here to visit unusualwhales.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.