This Single Trade Tripled Open Interest

Hey Traders,

Sometimes the most interesting Big Money trades aren’t necessarily the biggest money.

Sometimes the most interesting ones to look at are the unusual volume trades that are especially unusual …

For example, this healthcare real estate trust saw nearly 140 times its average daily volume cross the tape yesterday …

In one trade! 

In fact, this single trade tripled this REIT’s open interest in the pits.

Now that’s some interesting Big Money action …

Let’s take a look …

Dr. REIT

Although Physicians Realty Trust (Ticker: DOC)’s chart may look full of ups and downs, the shares of the healthcare real estate stock has largely stayed within $17-$19 all year … not exactly a huge trading range!

Overall, the stock seems to be slowly, yet tumultuously, trending higher, and seem to be finding support once again from their 200-day moving average.

Chart courtesy StockCharts

But there is one Smart Money trader who looks like they are betting on new highs to come …

And their trade is making a statement in DOC’s typically low-volume pits!

This trader purchased a total of about 10,000 April 20-strike calls, with the largest single trade being a block of 9,564 contracts for $0.40.

Now, this is a total outlay of $382,560 … not exactly an earth-shattering Big Money investment (though of course more than you or I would probably be willing to put down).

But … this trade tripled DOC’s open interest!

No, I don’t mean it tripled the open interest of DOC’s April 20-strike calls …

I mean it tripled DOC’s open interest, period.

DOC pits see an average daily volume of just 103 contracts.

Before this trade crossed the tape, DOC’s entire open interest was around 4,600 …

So this trade alone was more than twice the volume of every other open contract.

Open interest on the April 2022 20-strike calls is now 11,494 …

The second highest open interest contract is the January 17.5-strike calls, with 1,169 open contracts!

Calls now outnumber puts 10-to-1.

This is some Big Money volume to pay attention to.

No, it’s not a $8,000,000 bet on Apple (Ticker: AAPL) or some other big-volume name …

But even with its relatively “low” dollar investment, such an outsized move in otherwise-quiet pits definitely makes a statement.

These trades are exactly what I like to find in my Big Money Flow program … under the radar moves that make big statements.

I actually piggybacked this trade with the July 20-strike calls for $0.65. I would have recommended it to my Big Money Flow members but remember … the average daily volume in DOC is a measly 103 contracts!

Liquidity can be an issue when you’re trading, so always be sure to check the average trading volume before you make your move. The last thing you want is to get stuck in a trade because you can’t get your closeout order filled.

But assuming you aren’t trying to fill an excessive number of contracts, and you are practicing good money management (as always!) then making your own piggyback trade off of unusual Big Money flow like this is always an option.

Or … join me in my Big Money Flow program, and I’ll help you find Big Money trading opportunities of your own!

Your Only Option,

Mark Sebastian

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