Trader Sees More Upside in BVN on a Strong Chart

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 over 3,000 BVN March 18 Calls for $.60. This order cost over a $175,000. Each contract entitles the option buyer/owner to buy 100 shares of the underlying stock upon expiration. BVN has an ADV (Average Daily Volume) of 1,350,000 shares.

I speculate that this trade could be a hedge against a short stock position because the stock looks like it will see massive resistance $16.80. Therefore, I did not buy these Calls.

Also, after yesterday’s Fed announcement has made me very skeptical about buying any Calls in the near future.

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Andrew Keene

About the Author: Andrew Keene

Andrew Keene is President & CEO of AlphaShark Trading, which he originally founded as KeeneOnTheMarket.com 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.