Vinco Ventures Traps Shorts, Options Traders Bet Big On Squeeze Potential

Vinco Ventures, Inc BBIG on Monday gapped up 71% higher and opened at the $9.10 level amid speculation the stock was the latest target of a short squeeze. Vinco then hit a psychological resistance level at $10 where it ran into a group of sellers and closed the day down about 22%.

Vinco traded down to $5.51 in Tuesday's session, which closed the gap and bulls came in and bought the dip. Because gaps fill 90% of the time, bullish traders may have been waiting for the gap to fill before taking a position.

A number of options traders did exactly that and at 9:43 a.m., near when Vinco reached its low-of-day, the traders began hammering bullish call contracts which continued throughout the trading day. Together the traders bet over $3.33 million Vinco is headed higher over the following weeks and months. It's interesting to note there are now Vinco calls available for purchase with a $20 strike price.

The trades below have been filtered to include only orders with a total purchase price above $50,000 made before 3 p.m.

See Also: Want to Buy Vinco Ventures (BBIG) Stock? See This First

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 or put option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of 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 BBIG Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

• At 9:43 a.m., a trader executed a call sweep near the ask of 694 Vinco Venture options with a strike price of $6 expiring on Sept. 17. The trade represented a $58,990 bullish bet for which the trader paid 85 cents per option contract.
• At 9:48 a.m., a trader executed a call sweep near the ask of 844 Vinco Venture options with a strike price of $6 expiring on Sept. 17. The trade represented a $67,520 bullish bet for which the trader paid 80 cents per option contract.
• At 9:54 a.m., a trader executed a call sweep near the ask of 355 Vinco Venture options with a strike price of $5 expiring on Jan. 21, 2022. The trade represented a $62,125 bullish bet for which the trader paid $1.75 per option contract.
• At 9:43 a.m., a trader executed a call sweep near the ask of 783 Vinco Venture options with a strike price of $6 expiring on Sept. 17. The trade represented a $58,990 bullish bet for which the trader paid $1.15 per option contract.
• At 9:56 a.m., a trader executed a call sweep near the ask of 500 Vinco Venture options with a strike price of $4.50 expiring on Jan. 21, 2022. The trade represented a $111,500 bullish bet for which the trader paid $2.23 per option contract.
• At 10:01 a.m., a trader executed a call sweep near the ask of 200 Vinco Venture options with a strike price of $4 expiring on Jan. 21, 2022. The trade represented a $51,600 bullish bet for which the trader paid $2.58 per option contract.
• At 10:13 a.m., a trader executed a call sweep near the ask of 400 Vinco Venture options with a strike price of $6 expiring on Oct. 15. The trade represented a $56,000 bullish bet for which the trader paid $1.40 per option contract.
• At 10:16 a.m., a trader executed a call sweep near the ask of 608 Vinco Venture options with a strike price of $6 expiring on Oct. 15. The trade represented a $85,120 bullish bet for which the trader paid $1.40 per option contract.
• At 10:23 a.m., a trader executed a call sweep near the ask of 525 Vinco Venture options with a strike price of $6 expiring on Sept. 17. The trade represented a $60,375 bullish bet for which the trader paid $1.15 per option contract.
• At 10:48 a.m., a trader executed a call sweep near the ask of 500 Vinco Venture options with a strike price of $6 expiring on Sept. 17. The trade represented a $65,000 bullish bet for which the trader paid $1.30 per option contract.
• At 10:54 a.m., a trader executed a call sweep near the ask of 639 Vinco Venture options with a strike price of $9 expiring on Sept. 17. The trade represented a $57,510 bullish bet for which the trader paid 90 cents per option contract.
• At 11:32 a.m., a trader executed a call sweep near the ask of 1000 Vinco Venture options with a strike price of $7.50 expiring on Jan. 21, 2022. The trade represented a $140,000 bullish bet for which the trader paid $1.40 per option contract.
• At 12:17 p.m., a trader executed a call sweep near the ask of 1000 Vinco Venture options with a strike price of $9 expiring on Sept. 17. The trade represented a $74,000 bullish bet for which the trader paid 74 cents per option contract.
• At 12:21 p.m., a trader executed a call sweep near the ask of 638 Vinco Venture options with a strike price of $6 expiring on Sept. 17. The trade represented a $76,560 bullish bet for which the trader paid $1.20 per option contract.
• At 1:27 p.m., a trader executed a call sweep near the ask of 449 Vinco Venture options with a strike price of $5 expiring on April 14, 2022. The trade represented a $98,780 bullish bet for which the trader paid $2.20 per option contract.
• At 2:04 p.m., a trader executed a call sweep near the ask of 598 Vinco Venture options with a strike price of $5 expiring on Jan. 21, 2022. The trade represented a $143,520 bullish bet for which the trader paid $2.40 per option contract.
• At 2:06 p.m., a trader executed a call sweep near the ask of 396 Vinco Venture options with a strike price of $3 expiring on Sept. 17. The trade represented a $158,400 bullish bet for which the trader paid $4 per option contract.
• At 2:07 p.m., a trader executed a call sweep near the ask of 328 Vinco Venture options with a strike price of $7 expiring on April 14, 2022. The trade represented a $62,320 bullish bet for which the trader paid $1.90 per option contract.
• At 2:09 p.m., a trader executed a call sweep near the ask of 500 Vinco Venture options with a strike price of $7.50 expiring on Oct. 15. The trade represented a $87,500 bullish bet for which the trader paid $1.75 per option contract.
• At 2:14 p.m., a trader executed a call sweep near the ask of 409 Vinco Venture options with a strike price of $5 expiring on Jan. 21, 2022. The trade represented a $100,205 bullish bet for which the trader paid $2.45 per option contract.
• At 2:21 p.m., a trader executed a call sweep near the ask of 863 Vinco Venture options with a strike price of $6 expiring on April 14, 2022. The trade represented a $62,320 bullish bet for which the trader paid $2.35 per option contract.
• At 2:31 p.m., a trader executed a call sweep near the ask of 6921 Vinco Venture options with a strike price of $6 expiring on Sept. 17. The trade represented a $1.38 million bullish bet for which the trader paid $2 per option contract.
• At 2:54 p.m., a trader executed a call sweep near the ask of 449 Vinco Venture options with a strike price of $6 expiring on Sept. 17. The trade represented a $92,045 bullish bet for which the trader paid $2.05 per option contract.
• At 2:59 p.m., a trader executed a call sweep near the ask of 819 Vinco Venture options with a strike price of $10 expiring on Oct. 15. The trade represented a $158,400 bullish bet for which the trader paid $1.58 per option contract.

BBIG Price Action: Vinco Ventures was trading up 14.5% to $8.08 at publication time.