Option Traders Pile In As FuboTV Surges Higher

FuboTV Inc FUBO broke above resistance Wednesday and a number of options traders jumped in to purchase call contracts.

On May 12, fuboTV broke bullish from a months-long daily descending channel it had been trading in since Jan. 27 and has continued its upward trajectory which began with the company reporting stellar first-quarter 2021 earnings. On May 27, fuboTV regained the 200-day simple moving average as support, indicating overall sentiment in the stock has become bullish, which gave traders and investors confidence a larger move north was on the horizon.

Together, fuboTV options traders bet over $734,148 that shares of the streaming company are headed higher.

See Also: Why FuboTV Stock Could Make A Move In The Weeks Ahead

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

• At 9:41 a.m., Wednesday a trader executed a call sweep, near the ask, of 441 FuboTV Entertainment options with a strike price of $35 expiring on July 16. The trade represented a $49,392 bullish bet for which the trader paid $1.12 per option contract.
• At 9:43 a.m., a trader executed a call sweep, near the ask, of 200 FuboTV Entertainment options with a strike price of $26 expiring on June 25. The trade represented a $52,000 bullish bet for which the trader paid $2.60 per option contract.
• At 11:18 a.m., a trader executed a call sweep, near the ask, of 252 FuboTV Entertainment options with a strike price of $25 expiring on Aug. 20. The trade represented a $143,640 bullish bet for which the trader paid $5.70 per option contract.
• At 11:25 a.m., a trader executed a call sweep, near the ask, of 248 FuboTV Entertainment options with a strike price of $35 expiring on Dec. 17. The trade represented a $117,800 bullish bet for which the trader paid $4.75 per option contract.
• At 12:13 p.m., a trader executed a call sweep, near the ask, of 357 FuboTV Entertainment options with a strike price of $25 expiring on Dec. 17. The trade represented a $296,310 bullish bet for which the trader paid $8.30 per option contract.
• At 12:50 p.m., a trader executed a call sweep, near the ask, of 463 FuboTV Entertainment options with a strike price of $36 expiring on July 16. The trade represented a $75,006 bullish bet for which the trader paid $1.62 per option contract.

FUBO Price Action: Shares of FuboTV traded up 17% to $28.45 at publication time.