$NTES NetEase Inc - Bullish Options Flow

26 באוג׳ 2020

NTES NetEase Inc - Bullish options flow today with a breakout to a fresh 52 week high, closing above $500 for the first time ever.

Just under 1k $340.00 strike (very deep-in-the-money) Sept 18th calls traded today for a total premium outlay of about 16M or ~$17,500 per contract. It is highly likely that this was a large hedge fund that made this trade.

An options trade this deep-in-the-money is essentially leveraged stock trading. There is no gamble, there is no extrinsic/time value baked in. The premium paid is almost 100% intrinsic value with a very high delta.

Near term target: $540.00-$550.00 range


Note: Not investment advice.