Unusual Options Activity - Bullish Trade Bets Stocks Keep Rising

Key Points
  • Bullish S&P 500 ETF call buying 
  • Trader buys (SPY) November 258 calls
  • Betting that the S&P 500 will rise another 1.5% by November 17
VIDEO0:3400:34
Unusual options activity: Bullish trade bets stocks keep rising

Options trader, Jon Najarian, spotted a big, bullish bet on the S&P 500 on Monday.

BEHIND THE TRADE

Someone bought 85,000 of the S&P 500 ETF (SPY) November 258 calls.  These calls expire November 17th. This call buyer controls some 8.5 million shares of (SPY) from $258.

HOW THIS TRADE MAKES MONEY

The S&P 500 has to rise about 1.5% to 2,580 for this trade to make money.