Henry Schwartz, President of Trade Alert, tells TheStreet’s Jill Malandrino options order flow was very quiet into the deal announcement, but looking further back, interesting call volume on March 10 was detected. A position turned out to be a $14 million winner on $700,000 on premium spent. When looking for speculative flow, Schwartz keeps an eye on size, implied volatility spikes and put/call skew. Other names that Schwartz is looking at based on order flow include Pfizer, eBay and Lifelock. While it is difficult to mirror large institutional trades, Schwartz reviews different ways retail traders can incorporate flow into their research and take advantage of what the options market is indicating.
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