Here’s why I try to watch “fund flow” very carefully (but not nearly focused enough, I miss a ton on my real time feed)–Fund Flow is defined by large option orders (read by me to be speculation orders vs hedge orders). I was just noticing in my chart scans this morning that ULTA is showing technical strength and is in a squeeze. I decided to check recent option activity. This trade occurred last Friday as an opening trade (these are single orders, not aggregate):
BTO 1800 contracts Jan 230 calls @ 3.45
STO 3600 contracts Jan 240 calls @ 1.25
(bull call ratio spread)
On Friday the stock closed at 218.25
Yesterday the stock closed at 226.00
Those Jan 230 calls are now 5.4 mid. The 230’s are up $360,000 in 6 days.