Sweep orders usually by smart money?

Discussion in 'Trading' started by deanstreet, Jul 7, 2021.

  1. Really?

    When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

    These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position


    https://www.benzinga.com/markets/options/21/07/21882549/nio-dips-while-options-traders-grab-calls
     
  2. qlai

    qlai

    I am not smart money, but the above makes sense.
     
    • At 9:36 a.m., a trader executed a call sweep near the ask of 205 Nio options with a strike price of $50 expiring on July 16. The trade represented a $38,540 bullish bet for which the trader paid $1.88 per option contract.
    On IB's time and sales for that option, I don't see any 205-size order traded at 1.88. How do you identify such swipe trades?
     
  3. qlai

    qlai