Despite the stock market finally closing a session in the red (albeit barely), sharp paper continues to anticipate more strength as evidenced by some bold trades. Northern Trust NTRS – NASDAQ was the beneficiary of one such trade earlier today when 15,000 NTRS November 100 calls were picked up.
While this trade cost north of $1 million, what’s far more significant is its relative size as NTRS only trades 283 call options per day on average. Translation? This single order accounted for 53 times typical volume.
Given a break-even price of $100.70, NTRS needs to increase 7.9% for this trade to pay off by expiration. If it does, our customer will take in $1.5 million for every dollar NTRS rises above this level. With earnings approaching on October 18, does this trader already know what the public doesn’t?
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