OptionsHouse

Options Trading News

November 19, 2013  Tue 9:54 AM CT

FAST: SEE CHART GET CHAIN FIND STRATEGIES
A large trader is betting that Fastenal will see more volatility in coming months.

More than 6,300 FAST options have change hands today, 6 times its daily average for the last month. Almost all of that action is in one strike.

optionMONSTER's Heat Seeker system detected the purchase of 5,000 February 50 calls for $1.20, with prices rising in subsequent smaller prints. This is clearly a new position as previous open interest at that strike was just 1,173 contracts. (See our Education section)

Just after the calls were bought, the biggest block of FAST stock traded as 160,000 shares were sold for $46.92. The combination of sold shares and long calls creates a delta-neutral play that is long volatility.

FAST is up fractionally to $46.96 this morning. The construction-supply company bounced off support at $44 in late August and hit long-term resistance at $52 two weeks ago.
Share this article with your friends


OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Upcoming Webinar:

Using Options For Income

http://bit.ly/1nY1OKA

Jon Najarian and Adam Mesh of Options Wealth Machine discuss a detailed strategy utilizing credit spreads to generate income, and how any level of trader can use this simple trading technique.

Education & Strategy

Sweet Spot Exceptions

As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

View more education articles »