Block Trade
A block trade is a large transaction involving a substantial quantity of securities or contracts, typically handled according to the relevant market's block trading procedures.
Why it matters to you
Large options blocks can reveal where significant institutional sized activity is occurring. But size alone does not reveal the trader's complete thesis. A large call purchase could be: bullish speculation, a hedge against another position, one leg of a spread, or part of a broader portfolio transaction.
Terms that sit next to this one
Institutional Trading