May's "Trade of the Day" Reviews

Since today is May expiration, we thought we'd look back and see how the pro "Trades of the Day" did.


On April 26th, a trader sold 10,000 May $97 calls at $0.13 and bought 5,000 May $94 calls at $0.68 for a debit of $0.42 or $210,000. You can read a recap of the trade here:  TLT May $94/$97 1x2 ratio spread. This trader killed it! TLT closed trading today at $95.32. We calculated the break even price for the spread @ $94.42 so if they held it to the close today (highly unlikely) they would have make .90 on 10k contracts or $900k.  Not a bad couple of weeks.  Huge win!


On April 19, A trader sold 4,000 May $37 puts at $0.16 and bought 4,000 May $40 puts at $0.63 for a debit of $0.47 or $188,000 in DIS. A bear vertical that didn't work out but could have been a hedge.  The toughest part about reading option prints is that you don't know if they already have a position or not.  It is interesting that after the 19th, the stock rallied 3 points.  We'll count this as a loss.