Are Call Sweeps Bullish?
The short answer is not always. I have been tracking and trading Unusual Options Activity for many years and I have seen both Bullish & Bearish sweeps on the Call side. What this means is that you can have a sweep order to sell Calls which is essentially taking a bearish position.
Normally a bearish Call sweep will see the order coming through on the “Bid side” .
This is what a bearish call sweep looks like. Notice the Calls were swept on the “Bidside”
What is an Option Sweep? An option sweep is basically when a big trader breaks up a large order into small individual trades. This is usually done in order to get filled fast or to conceal a large order. The common thinking is that a sweep usually means a big trader knows something and is…
This is the process of satisfying put exercise or call assignment. In either case, stock is delivered. In the case of indexes, delivery involves the transfer of cash equal to the settlement value of the index minus the strike price of the options contract. See also: Options Assignment, Automatic Exercise, American Style Option
This is when you sell a straddle against shares that you already own. It is important to note that the covered straddle is not really fully covered since only the calls are covered. The strategy has a bullish bias.
This is when you own shares in a particular stock and then you sell Calls against it and then buy Puts. You would use this strategy when you think that the stock rice is a little overdone and you are expecting some downside. This has limited risk due to the long put option, but also…
A closing purchase is an order that you place to offset an existing short position. For example, If you sell a call option to open a new position, you would then need to offset or close that position with a closing order to buy. In other words, you would buy-to-close.
This is a spread trading strategy that involves buying and selling options, but the trader typically sells a greater number of contracts sold than what is purchased. See also Ratio Back Spread & Ratio
