In the final minutes of trading on Friday, large investors purchased millions of dollars worth of short-dated, out-of-the-money call options on the SPDR S&P 500 ETF Trust ($SPY), with expirations within one to three days. This surge in call buying occurred just before a weekend rumor about a China-US deal emerged, leading to a gap up in $SPY to the strike price of 580. As a result, these investors realized returns exceeding 900% overnight, with some $580 calls appreciating by as much as 1,400%. Similar unusual trading activity was observed in other major stocks including Amazon ($AMZN), Uber ($UBER), GameStop ($GME), and Tesla ($TSLA), with traders reportedly earning over 500% returns during the weekend. This pattern of front-running market-moving news echoes a previous instance on April 9, when traders anticipated comments from former President Donald Trump to "buy now," generating millions in profits. The unusual options flow was identified and analyzed by communities such as Unusual Whales, which highlighted the timing and scale of these trades days before the news broke. One trader reportedly turned $1.2 million into nearly $20 million through these strategic call option purchases. The activity underscores a trend of significant pre-news trading in the options market, particularly around geopolitical developments involving China and the US.
This trader turned $1.2 million into nearly $20 million. Right before close, in the FINAL MINUTES of the market, traders bought MILLIONS in $SPY calls, the largest volumes of days. These calls were all OTM, expirying the next Wednesday & Friday (!!!). The $580 calls went 1400%
Remember when traders front ran news after Trump’s “buy now” comments on April 9th? ONE MONTH LATER, it happened again. @snorlax_uw breaks it down on the @unusual_whales YouTube—unusual flow flagged in UW Discord DAYS before news The flow made millions. https://t.co/ZSiBu9Lfzn
Remember when traders front ran Trump news after comments to "buy now" on April 9th? ONE MONTH LATER, it's happened again. Here's a breakdown by @snorlax_uw on the @unusual_whales YouTube on unusual activity caught by the community DAYS before news. The flow made millions.