Block Trader Takes Massive Position In Context Logic

Context Logic Inc WISH, a stock that's become popular in Reddit trading forums, opened higher Tuesday before entering a period of consolidation on lower timeframes.

On Monday, the San Fransisco-based e-commerce company announced it partnered with platform PrestaShop, but Context Logic had already shot up over 90% over June 8-9 after being targeted by retail traders due to its bizarre levels of ownership and/or short interest.

97.75% of Context Logic’s 338.76 million share float is owned by insiders and institutions with insiders owning 4.89% and institutions owning 92.76% of the float. 24.12 million of Context Logic’s shares, or 15.75%, are held short.

Institutions have been hammering call contracts of Context Logic for days, but notably on Tuesday afternoon, an institution placed a massive block trade of shares totaling $11.32 million.

The WISH Block Trades: Below is a look at the most notable options alerts, courtesy of Benzinga Pro:

• At 12:43 p.m., a trader executed a block trade at the ask of 1 million Context Logic shares at $11.32. The trade represented an $11.32 million bullish bet.

Why It’s Important: When a block trade occurs it indicates a hedge fund or institution has taken a position in common shares. A block trade always involves large sizing and is typically handled by a blockhouse privately and outside of the open market. Because block trades don’t happen on the open market the large size of the trades doesn’t create volatility in the stock being traded.

These types of purchase orders are made by institutions purchasing a large number of a security and retail investors can find watching for block trades useful because it indicates “smart money” has entered into a position.

WISH Price Action: Shares of Context Logic were trading around $11.27 at publication time.