Starting Off the Week With a Massive Winner in SAP SE (SAP)

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SAP SE (SAP) is a German based business enterprise software company that provides digital solutions to businesses across the size spectrum. At the time of this post, SAP is currently trading at 67.44, up 3.54% on the day. Despite today’s rally, the stock is firmly within the lower portion of its 52 week trading range of 64.10-83.79, though it has managed to hold the 65.00 support level on a daily chart.

Earlier this morning at approximately 8:42AM CST, OptionHacker detected and flagged some unusually bullish options activity that came across the tape in the January ’15 67.5 strike calls. A large block of 1,000 contracts was purchased at the ask of 0.35 against an open interest of just 576 contracts, so we can surmise confidently that this was an opening transaction to establish a long call position. Just moments after this large block-buy, trading in SAP was halted pending an earnings related news release. Upon resumption of trading, SAP shot up over 4% on positive news surrounding preliminary Q4 revenues, and the call options that were bought for 0.35 traded as high as 1.35, a nearly 300% gain in a matter of minutes. This trade was another massive winner that was detected before the news by OptionHacker.

Trade: Trader bought 1,000 SAP Jan 67.5 Calls for $0.35
Risk: $35 per 1 lot
Reward: Unlimited
Breakeven: $67.85

Andrew Keene

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