Hey Traders,
Last week we talked a lot about large caps …
Including some Big Money trades that showed us perhaps some of the largest traders on the market …
Are losing a little faith in some of the largest names on the market.
But I find it just as interesting – or even more so – when I note big volume in a small stock!
Which is exactly what I’ve been noticing lately in one name in particular.
It’s a stock you may have never even heard of …
But it is seeing some serious money flows in the pits!
Clovis Oncology (Ticker: CLVS) has been the subject of quite a bit Big Money attention.
CLVS shares have rocketed higher in recent weeks …
And at first glance, you might assume the shares have been buoyed higher by positive drug data and whispers of a potential buyout deal.
However … to me, it looks like a possible squeeze!
The shares have seen strong trading volume in the options pits over the last few days …
Last week, I noticed quite a bit of volume in the July term … plenty of traders buying the July 3-strike calls, closing out 2.5-strike calls for a win, and even some large all spread buyers.
And after seeing how CLVS moved on Friday (it popped 27.7% to end the week at $2.77!) I can certainly see why.
But this week, Big Money is making even more moves on the oncology stock …
And this trade bodes well for CLVS upside.
This is a bull closing and rolling into the future.
first, they closed out their position of 20,000 July 3-strike calls for $0.19, then they opened the same number of August-dated 3.5/5.5-strike call spreads, paying $0.63 for the lower strike, and selling the 5.5-strike calls for $0.31.
All in all, this outlay required an additional $260,000 for an extra month of exposure to CLVS upside.
And on Tuesday, Big Money was back for more!
I think this might very well be the same trader, continuing to build a strong position in the August call spread …
And I’m very interested in the message they’re sending!
Personally, I saw a trade that I liked better on this name …
A little longer-term, a nice risk/reward …
But only my Big Money Flow members know what it is.
Your Only Option,
Mark Sebastian