Yesterday, I did something I haven’t done in a long time. It made me feel dirty, filthy even.
I followed someone else’s trade due to “unusual option activity.”
I know I know, novice level sh*t. But, sometimes it is tough to ignore massive block trades like the one we saw yesterday go off in Pandora, $P.
Someone went in large on $P $5.5 strike calls for next week, the majority of which were bought on the ask. In other words, they just wanted in no matter the price they had to pay. I couldn’t find that it was part of a spread trade, so it seemed as if it were a bet on earnings next week. Pandora reports earnings next Wednesday and it would appear someone got wind of a possible earnings beat.
Be forewarned that these trades are literal lottery tickets and we aren’t gamblers here at OmahaCharts. We manage risk first, above all else so if you are going to follow this trade, do it with money you are more than happy tossing up into the wind.
Back with more soon.
