Aggressive Call Buyers in BGC Partners Inc. (BGCP)

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BGC Partners Inc. (BGCP) is a New York City based investment and brokerage services provider that also maintains a presence in the wholesale real-estate financing sector. At the time of this post (2:00PM CST), BGCP is currently trading higher by 2.64% on the day, up to 9.30. The stock printed fresh 52 week highs earlier in the session, trading as high as 9.57 before pulling back slightly into the late afternoon.

Earlier this afternoon, at approximately 12:06PM CST, OptionHacker detected and flagged some unusually bullish options activity crossing the tape just before BGCP exploded to new highs for the year. The first large block buy detected by OptionHacker was a 2,200 contract lot of the Aug ’15 10.0 calls bought up for $0.61, which was over the ask price at the time. This purchase went off against an open interest of just 8 contracts, so we can be very sure this was a buyer stepping in and looking for continued upside in BGCP heading into next summer. OptionHacker detected and flagged two more large block buys in the same calls, the next for 1,500 contracts purchased for $0.80 at 12:17PM CST and another 900 contract lot bought for $0.83 at 12:45PM CST, both of which paid over the ask. With a total cash outlay of over $320,000 pre-commission, the large buyers of these calls have given themselves approximately eight months for BGCP to continue its bullish trend higher. While I like the technical setup and the bullish options flow, I am not willing to chase up the current ask price on these contracts, and will remain only an observer of this trade for now.

Trade: Trader bought the BGCP Aug 10 Calls for as high as $0.84
Risk: $84 per 1 lot
Reward: Unlimited
Breakeven: $10.84

Andrew Keene

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