someone very important bought call options for the stock so stock can be going up or in some cases this big buy of call options forces other investors to push the stock up because they don’t want to lose on the call options they have so they also push stock up by buying stock
good explanation? no why not?
explanation for adults: Institutional or high net worth investors have bought large call option positions and depending on the specifics their actions can cause the stock price to move up either because they have bought the call options as a directional bet or they are pushing the stock up to protect or enhance gains they would get from exercising the call options they bought. So other investors may have call options they bought and this push can force them to act to either buy more stock to protect or enhance their gains or sell their call options to close out the position before they lose all the value.
### tarek:
like the explanation for adults
### lbljc:
Or, a fat cat just decided to buy a bunch of NTES call options, and is throwing his weight around to make sure the price stays at his desired level.
Or, the call options are just so cheap right now, anyone and everyone is buying them up, driving the price up because there's only so much supply to go around.
Without knowing who bought the options, which options were bought, and how many, all we can do is speculate.
### giz:
This article and the one about BA seem similar. What they are saying is true but no numbers or cost to benefit is ever mentioned. These trades are expensive and anyone can place a large trade and it doesn't mean it will affect the stock price. Only the sale of the call option will drive up the stock price as the shorts of the call will buy the stock in order to deliver it to the call buyer. Only the sale of the call affects the stock price. A large option trade has little to no effect on the stock price.
### reneomu:
Buyers have also bought put options for this stock, the price could also go down. You can't tell the direction the stock will go just from knowing how many call options are bought.
### COA:
Yes, but when I see that 1 million shares or more, has been traded in the options on a particular stock, I look at that stock. When I see that shares traded on options is small, relative to shares traded on the stock, I ignore it.
The exception to this is when the stock is thinly traded.
Disclosure - I own Netease shares.
### giz:
Thanks COA, I had a similar response to the BA article as it mentions 112,000 call options bought but doesn't say anything
Read from source...
https://www.reddit.com/r/Zen/comments/xxzvw/finally_the_moon_the_answer_to_the_question_the/
17 October 2022
### Jim Townsend on Xinhua:
"I met Gabe Pressman who said he saw my teacher Loy Pangimotang driving a cab. Loy was from the same part of the Phillipines as my mother's family and he said that Phillipines people do not kiss his hand. So I asked Gabe why did he say the Phillipines kiss his hand and he told me his publisher wanted to sell books to China. I met Roger Senserrie in 1986 who said he saw my teacher Bob Friedman on the bus going to New Hampshire and Bob said hello to me. So I asked Roger why he was talking about my teacher and he told me he liked Chogyam Trungpa. I saw a hitchiker who said my teacher was in town and he took a bus to Boston. I met a woman in front of my school who said she saw my teacher crossing the street in front of my house. I told my teacher about this and he said he wasn't in town. I met a man who said he saw my teacher taking a class at the New York Public Library. I met a man who said my teacher was standing in front of his house. I asked my teacher if he ever met a man from North Carolina and he said he did not know. I told my teacher about a man who said my teacher was from North Carolina and he said he did not know. I saw a picture of my teacher sitting in the seat of a car. I asked my teacher why he was in a car and he said it was a car with a bullet proof glass. I asked my teacher why did he sit in a car and he said it was his car. I met a man who said he saw my teacher taking a shower. I asked my teacher about this and he said he did not take a shower. I asked my teacher if he ever talked to a man named Joe and he said he did not know. I told my teacher about a man named Joe who said he talked to my teacher and my teacher said he did not talk to Joe. I met a man who said my teacher was his best friend. I asked my teacher about this and he said he was not his best friend. I asked my teacher why did this man say he was his best friend and my teacher said he did not know." https://www.reddit.com/r/zen/comments/vy7pq/jim_townsend_zen_teacher_lets_the_cat_out_of_the/
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Tags:NetEase, options, activity, trading, stock, volume, NetEase, trades, investors, trading, call, put
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### News & Events
1. 03/17/2023 - NetEase has been awarded a renewal of its publishing