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”
A Box Spread is simply a combination of two vertical spreads. These spreads are used by professional Options traders who are trying to take advantage of a situation where the cost of the spreads (both verticals) is less than what the verticals would be worth when they expire. They consider this to be a type…
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 an options contract, put or call, that can be exercised at any time prior to expiration. Stock, exchange-traded funds, and some index options also settle American-style. The alternative is the European Style Option which can only be exercised at expiration.
This is when you sell an options contract and simultaneously buy one with a later expiration date and a higher or lower strike price. For example, if your sell to open the AAPL NOV 145.00 Call and then buy to open the AAPL DEC 150.00 Call , you have created a diagonal spread. See also:…
This is a large equity trade consisting of 100,000 or more shares.
This is the difference between the current bid price and the current asking, or offering price. For example, if you see a quote that looks like this: 2.05 x 3.10 – what this means is that the bid is 2.05 and the ask is 3.10. Therefore the bid-ask thread is 1.05 i.e the difference between…
