Wednesday, July 31, 2013

$OKE (ONEOK Inc.) Case Study: Options Volume Analysis (Another dimension for Options Trading). How to Make $2.1 million in 17 Days, let's track where the smart money goes.

Let's start it simply, $OKE has averaged 1,747 calls traded per day over the last 3 months


Now let's take a look at the Options Chain from 2013.07.08




So $OKE closed at $41.42 and check out the volume in the Aug 45 calls: 6,346 calls traded with OI(open interest) only 142 and most of them were bot at offer price around $0.50.


The following day OI rose to 5,544, meaning that  5,402 calls were bot to open at $0.50 for $270,100 "investment"


We can see those Aug 45 calls are closed at $4.50 turning that $270,100 investment into a $2.43M or about $2.16M profit (800%) in 17 days.



What a lucky! ;)



$AAPL (Apple Inc.) Nice daytrade setup with fibonacci projections. In daily chart, it's building bottom pattern nicely, so wait and see, we could see the next up trend coming soon.



$FB (Facebook Inc.) Nice landing at the target after big gap opening on last Thursday. $FB is now officially in the up trend, it should protect the 32.50 level to remain bullish.