Hey trader,
Two call trades in The Trade Desk (TTD) just lit up my scanner:
Here’s what caught my eye.
The volume nearly matches the open interest on both trades.
Someone bought 3,307 of the October 30 $13 calls against 3,305 contracts of open interest.
The October 16 $13 calls saw 2,668 contracts against 2,666 in open interest.
Day volume on those October 16 contracts has now run up to 28,002. That’s more than 10x the open interest on that strike.
The location bar is sitting in the green. Buyers paid the ask to get into these calls. Nobody was selling premium here.
The squeeze bar is about three-quarters full. TTD has a heavy amount of shares sold short.
If the stock starts to climb, short sellers may rush to buy back shares and cover. That buying can feed on itself and push the stock even higher.
These traders aren’t giving themselves much time. The October 16 calls expire in just two days. The October 30 calls leave a bit more runway.
The stock is in a serious downtrend. So, traders are looking for a short-squeeze pop. They’re willing to lose their bets because the payoffs can be multiples of what they paid. But if you want to be safe, look for daily closes over the recent highs as confirmation before taking a position.
Both trades landed on the $13 strike. The October 30 calls have a 0.39 delta, which puts them slightly out-of-the-money. If you like the bullish setup, the October 30 calls above are the ones I’d look at for following this flow.
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Take care,
Brandon Chapman, CMT
Creator of Ghost Prints
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