WISH Stock Skyrockets And Options Traders Pile In

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ContextLogic Inc (NASDAQ: WISH) soared on Tuesday amid increased interest in the stock.

ContextLogic went public Dec. 16, 2020, at $22.57 and, after a weeks-long period of consolidation, skyrocketed to a Jan. 28 all-time high of $32.85 before falling 77% to Monday’s low of $7.52. It looks as though the bottom may be in for the California-based software company and on Tuesday the stock shot up over 51%, filled its overhead gap and ran into the $11 range.

A number of options traders believe ContextLogic’s stock is headed much higher and purchased dozens of separate bullish call contracts totally over $1.08 million. A few options traders even purchased calls with a strike of $30 for December 2021.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price. A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The ContextLogic Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

  • At 9:43 a.m., Tuesday a trader executed a call sweep, near the ask, of 800 ContextLogic options with a strike price of $10 expiring on Oct. 15. The trade represented a $140,000 bullish bet for which the trader paid $1.75 per option contract.
  • At 10:39 a.m., a trader executed a call sweep, near the ask, of 290 ContextLogic options with a strike price of $10 expiring on Oct. 15. The trade represented a $59,450 bullish bet for which the trader paid $2.05 per option contract.
  • At 12:02 p.m., a trader executed a call sweep, near the ask, of 200 ContextLogic options with a strike price of $12.50 expiring on Oct. 15. The trade represented a $81,900 bullish bet for which the trader paid $2.40 per option contract.
  • At 12:09 p.m., a trader executed a call sweep, near the ask, of 805 ContextLogic options with a strike price of $10 expiring on July 16. The trade represented a $152,145 bullish bet for which the trader paid $1.89 per option contract.
  • At 12:51 p.m., a trader executed a call sweep, near the ask, of 497 ContextLogic options with a strike price of $22.50 expiring on July 16. The trade represented a $72,065 bullish bet for which the trader paid $1.45 per option contract.
  • At 12:52 p.m., a trader executed a call sweep, near the ask, of 1108 ContextLogic options with a strike price of $12.50 expiring on June 18. The trade represented a $139,608 bullish bet for which the trader paid $1.26 per option contract.
  • At 12:52 p.m., a trader executed a call sweep, near the ask, of 634 ContextLogic options with a strike price of $12.50 expiring on June 18. The trade represented a $79,250 bullish bet for which the trader paid $1.25 per option contract.
  • At 1:08 p.m., a trader executed a call sweep, near the ask, of 367 ContextLogic options with a strike price of $15 expiring on June 18. The trade represented a $43,673 bullish bet for which the trader paid $1.19 per option contract.
  • At 1:35 p.m., a trader executed a call sweep, near the ask, of 876 ContextLogic options with a strike price of $20 expiring on July 16. The trade represented a $122,640 bullish bet for which the trader paid $1.40 per option contract.
  • At 1:37 p.m., a trader executed a call sweep, near the ask, of 210 ContextLogic options with a strike price of $30 expiring on Dec. 17. The trade represented a $37,800 bullish bet for which the trader paid $1.80 per option contract.
  • At 2:40 p.m., a trader executed a call sweep, near the ask, of 200 ContextLogic options with a strike price of $7.50 expiring on Oct. 15. The trade represented a $84,000 bullish bet for which the trader paid $4.20 per option contract.
  • At 3:19 p.m., a trader executed a call sweep, near the ask, of 263 ContextLogic options with a strike price of $10 expiring on June 18. The trade represented a $78,374 bullish bet for which the trader paid $2.98 per option contract.

WISH Price Action: Shares of ContextLogic traded up 44% to $11.19 at publication time.

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