Block Trades 04 22 2014
Started by Market Report , Today, 08:53 AM
- - - - -
#1 Block Trades 04 22 2014: post #1 Market Report Posted Today, 08:53 AM
Time Symbol Details
10:07 VWO May02(W) 41 C (PHLX) 0.60 9000x
10:05 CTIC Jun21 2.5 P (CBOE) 0.18 10000x
10:00 ALU Jun21 4.33 C (CBOE) 0.19 8377x
9:37 IAU Oct18 11 P (CBOE) 0.15 11541x
SJFLEGENDS asked me what it was so here it is. He was bashful but I told him "it's okay, we all have to learn."
A "BLOCK TRADE" is a trade of a large quantity of securities. A block trade involves a significantly large number of shares or bonds being traded at an arranged price between parties, outside of the open markets, in order to lessen the impact of such a large trade hitting the tape.
Block Order is the same thing if you see or hear that term.
In general, 10,000 shares of stock (not including penny stocks) or $200,000 worth of bonds would be considered a block trade. However, in practice block trades are typically much larger as large hedge funds and institutional investors buy and sell huge sums of dollars and shares in block trades via investment banks and other intermediaries virtually on a daily basis.