A significant player with considerable resources has recently taken a bullish position on Shell (NYSE:SHEL), which is crucial information for retail traders. The emergence of this sizable investment in publicly available options history raises intrigue, often indicating insider knowledge and potential upcoming developments.
Understanding the Whale’s Moves:
Today, we came across 16 uncommon options trades for Shell, a departure from the norm. The sentiment among these high-value traders is divided, with 62% bullish and 37% bearish positions. Notably, there are 4 put options, amounting to $188,190, and 12 call options, totaling $1,345,358.
Targeting the Price Range:
Considering the Volume and Open Interest on these contracts, it appears that the whales have been setting their sights on a price range between $55.0 and $70.0 for Shell over the past three months.
Analyzing Volume & Open Interest:
Examining volume and open interest provides valuable insights for conducting due diligence on a stock. This data helps monitor the liquidity and interest in Shell’s options at specific strike prices. The following chart depicts the volume and open interest of calls and puts within the $55.0 to $70.0 strike price range, showcasing recent whale activity over the last 30 days.
Shell Option Volume And Open Interest Over Last 30 Days Significant Options Tracked:
Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
SHEL CALL SWEEP BULLISH 01/19/24 $65.00 $338.9K 5.9K 1.2K
SHEL CALL SWEEP BULLISH 01/19/24 $65.00 $261.9K 5.9K 4.7K
SHEL CALL SWEEP BULLISH 01/19/24 $65.00 $229.7K 5.9K 2.0K
SHEL CALL SWEEP BEARISH 01/19/24 $65.00 $140.2K 5.9K 2.6K
SHEL PUT SWEEP BULLISH 10/20/23 $62.50 $97.4K 937 0
Current Status of Shell:
Shell’s trading volume stands at 3,808,154, with a price of $62.19, reflecting a 0.64% increase. However, caution is advised as RSI indicators suggest the underlying stock may be nearing an overbought condition. Shell’s upcoming earnings report is expected in 14 days.
Expert Opinions on Shell:
Wells Fargo has maintained its Overweight rating on Shell and set a price target of $77.
Navigating Options Trading:
Options trading carries higher risk compared to stock trading, but it also offers greater profit potential. Skilled options traders mitigate risk by staying educated, adopting strategic trade entry and exit practices, following multiple indicators, and closely monitoring market trends.