When investors notice unusual trading activity in any stock, they usually pay dividends to watch out for the reasoning behind the buying activity so that they can also get behind whatever fundamental factor is acting as a tailwind for the underlying company. In this case, unusual trading activity has been spotted, though not in stock and not in a company.
[content-module:CompanyOverview|NYSEARCA:SPY]This time, up to $1.8 million worth of call options were spotted as a Buy in the SPDR S&P 500 ETF (NYSEARCA: SPY) last week, and here is why $1.8 million in call options means a lot more than the same amount in pure stock. Options carry two fundamental differences, leverage and timing, meaning if an option buyer doesn’t get the direction and timing of a stock’s move right, contracts can expire worthlessly and cost 100% of the initial position.
