At 3:40pm, a trader did the following butterfly;
- Bought 2025 contracts of March $580 calls
- Sold 4050 contracts of March 590 calls
- Bought 2025 contracts of March $600 calls
The spread was done for net debit of $2.20. The trader stands to make nearly 350% profit by next Friday if the market gets to pin Google at $590.
This is a bit early in the game as I normally try to find setups on Tuesday/Wednesday of option expiration week. But with this convincing volume, I will try for $2.15 tomorrow morning. The mark is $2.03 as of today's close. Note that by 12pm tomorrow, a lot of Theta will come out of these options because of the weekend. If Google only pauses above $580 tomorrow, the spread will continue to expand all day. Playing pin action is no different than betting on a specific number at a roulette table. Keep position size small. Where I normally recommend no more than 5% in each option trade, betting on pin action deserves no more than 2-3%.
Good luck!
