LSI - Multi Day Call Accumulator

Discussion in 'Trading' started by livevol_ophir, Jan 4, 2010.

  1. livevol_ophir

    livevol_ophir ET Sponsor

    LSI averages 613 option contracts traded a day - in the first 2 hours of trading today over 3,300 have traded. Further, all but 10 contracts were calls for a 330:1 call:put ratio.

    The day's biggest trades clearly illustrate that the action is in the Apr 7.5 Calls. The biggest trades are trading on the offer (cust purchases).

    We can see the OI (open interest) in the Apr 7.5 calls is 2006. By digging deeper, we can see the steady increase in opening postions in these calls. 12/31/09 shows a spike. These trades are all on the offer. It looks like there is a steady accumulation of OTM calls in LSI. On 12/31/09 they traded 0.15; today the bet doubles down paying 0.20.

    You can read details, prices, charts and order flow on my blog: