Hey trader,
A big call buy in Macy’s (M) hit the scanner this morning:
I want you to notice three things.
First, the volume is roughly 3x the open interest. That’s a clear indication of new options hitting the tape.
Second, the location shows all the way in the green. That means the trades hit the ask, or, that traders bought those calls.
Third, the squeeze bar is nearly full, showing us there is a high amount of shares sold short in this stock. When a stock with high short interest starts to rise, it can cause a cascade of buying as short sellers close their positions by buying back the stock.
This trade doesn’t go out far. But it fits with a larger rotation that could be starting out of the semiconductors and into the beaten down names.
These calls aren’t too expensive, even sitting at-the-money. So, if you want to play the bullish case, you can go alongside these calls above.
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Take care,
Brandon Chapman, CMT
Creator of Ghost Prints
Want to learn more about my Ghost Prints Scanner? Click Here.
