October 21, 2021
10:30ET
Insider Buying on E2open Parent Holdings, Inc. (ETWO) on Monday triggered large amounts of unusual options activity captured by the Unusual Whales Flow tool, yesterday.
- E2open Parent Holdings, Inc. (ETWO) experienced Unusual Options Activity yesterday
- Over 8,000 call contracts traded, vs. an average in the low hundreds
- Flow follows Insider trading on Monday, noted by Nasdaq on 10/20
- CFO purchased 2,000 shares at $10.96/share
Yesterday, amid the millions of options transactions trading on the markets, E2open Parent (ETWO), a business-to-business provider of cloud and on-demand software for telecom, electronics systems, and computers, saw especially unusual options activity.
Historically, ETWO has not experienced much options activity at all. For example, in late September, ETWO maintained an average of well below 100 call contracts transacted daily.
In October, these volume levels held true. That is, until yesterday (October 20, 2021). An insider buying report posted on Nasdaq yesterday, Chief Financial Officer Jarett Janik bought 2,000 shares of ETWO for $10.96 per share on Monday October 18th, worth a total of $21,920. Following this purchase, the stock price soared above $12.
The Unusual Whales Flow tool caught an influx of call option contract transactions. Compared to the low volume of options trading in previous weeks, the flow was absolutely massive, reaching 8,807 total calls traded. The flow also seems to continue today, as the total calls traded nears 1,000 in volume just 1 hour into the trading session.
This a textbook example of unusual options activity, as the volume dwarfs the average volume of options traded. The flow picked up by Unusual Whales also reflected a heavy bullish sentiment. Options traders focused on expiration dates more than a year in the future, called LEAPs (long-term equity anticipation securities).
Pictured below, the $12.5 call strike for April 14, 2022 alone accounted for 2,500 of those 8,807 contracts traded yesterday. This demonstrates a heavy expectation for the stock to be valued above $12.50 by or before April of 2022. The $15 call for December 17, 2021 also accounted for 2,000 contracts (1,000 sold, 1,000 bought), and the $12.5 call for the same date totaled an additional 1,100+.
At the time of the insider trade by ETWO CFO Jarett Janik, ETWO traded at $10.96 per share. One hour into today's trading session, ETWO is trading around $12.20 per share.
