Breaking: Calls Go Up 15% in Less Than 20 Minutes!

Today we saw a trader buy over 1500 AEO October 21.50 Calls for $.70. These Calls went up about 15% in value within just 20 Minutes, but I did not take his trade.

This is the power of Insider Buyer in the options market. This gives the trader the right but not obligation to buy almost 150,000 shares of AEO between now and October expiration and for this right they paid $.70 per 1 lot or almost $100,000 total. This is a big Insider Buyer of AEO Calls. The right but not obligation to buy 150,000 shares might not seem like a big order, but that stock has only traded about 1,700,000 shares of stock today. This stock moves about $.80 per day 1/3 of all days, so I think this stock could trade up to $22.50 by the end of the week.

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Andrew Keene

About the Author: Andrew Keene

Andrew Keene is President & CEO of AlphaShark Trading, which he originally founded as in 2011. Andrew currently actively trades futures, equity options currency pairs, and commodities. He is a regular guest market commentator on such networks as Bloomberg TV, CNBC, and Fox Business. Keene's first love will always be trading, but he is arguably even more well known for building a trading room. Andrew is especially proud of having taught his personal strategies to over 50,000 students over the past 4 years. He is a self-made millionaire from trading and wants to continue to teach and help others.