The Lebron Trade (Wall Street Edition: Post-Mortem)
Wednesday, the Stock Market Believed LeBron was Coming to NYC. Yesterday, It was 3 times as sure he wasn’t. Today, It’s thinking it may take a while.
At TiqIQ, we’re tracking volume for different option-related bets on Knicks parent co., MSG, Inc. Because the option market requires less capital to speculate, it can be a better indicator market sentiment than actual stock price.
Here’s what Mr. Market is saying:
*Option Volume was 2,400% higher than daily average
*Biggest trade was buying July calls (volume: 11,004). Betting MSG would be worth $22.50 on July 17th
Yesterday: 3x Bearish:
*Option volume almost 300% higher than yesterday, and 6,000% higher than daily average.
*Biggest trade is selling July calls (4:42pm volume: 28,326). Thanks to this article, regretting yesterday’s bet.
Today: This could take a while
*July Call Option volume 10% of yesterday’s.
*’In the Money’ line moved from $22.5 to $20 for all available options.
* Novemeber, 2010 calls down 44% on volume of 64 contracts.