I trade Unusual Options Activity (abnormal volume in calls or puts) because more often than not, these trades result in a stock making a major move.
Today we saw a trader buy more than 3,000 NKE December 72.50 Calls for $1.65 debit. This order cost over $500,000. NKE has an ADV (Average Daily Volume) of 7,700,000 shares. This trade has a huge risk and potentially a huge reward due to the fact that NKE reports Earnings after the closing bell on 12.20.2018. NKE has rallied 4 of the last 8 times after Earnings.
I bought these Calls for $1.65 and I have a profit target at $3.00 and $4.00.