Stocks

Decoding Toronto-Dominion Bank's Options Activity: What's the Big Picture?

Published December 6, 2024

Recent activity in the options market reveals a bullish trend among major investors regarding the Toronto-Dominion Bank, listed on the NYSE under the symbol TD. Our review of the options history for Toronto-Dominion Bank showed a total of 10 unusual trades, pointing towards significant investor interest.

Breaking down this trading data, we found that approximately 50% of traders took a bullish stance, while about 30% opted for bearish positions. Among the trades identified, there were 2 put options with a total value of $67,556, and 8 call options with a much higher value of $304,678.

Predicted Price Range

Analyzing both the volume and open interest of these options contracts, it seems that significant investors, often referred to as 'whales', have been targeting a price range for Toronto-Dominion Bank of between $47.5 and $60.0 over the past three months. This target price range indicates a potential price movement that traders should keep an eye on.

Volume & Open Interest Development

In terms of liquidity and trading interest, Toronto-Dominion Bank options currently have a mean open interest of around 1,623.5 contracts, and total volume has reached approximately 2,091. This level of activity reflects a healthy trading environment for options investors. The following data analysis provides a closer look at the volume and open interest of both call and put options for Toronto-Dominion Bank, focusing on significant trading activity within the identified strike price range of $47.5 to $60.0 over the last 30 days.

Toronto-Dominion Bank Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
TD CALL TRADE BULLISH 01/15/27 $3.8 $3.2 $3.8 $60.00 $60.8K 332 20
TD CALL SWEEP BEARISH 01/15/27 $5.4 $4.9 $4.9 $55.00 $59.8K 3.7K 270
TD PUT TRADE BEARISH 07/18/25 $1.8 $1.6 $1.75 $47.50 $35.0K 29 200
TD CALL TRADE NEUTRAL 01/16/26 $3.6 $3.4 $3.5 $55.00 $35.0K 3.9K 406
TD CALL TRADE BULLISH 01/16/26 $3.6 $3.1 $3.45 $55.00 $34.5K 3.9K 306

About Toronto-Dominion Bank

Toronto-Dominion Bank is one of the largest financial institutions in Canada, operating through three main segments: Canadian retail banking, U.S. retail banking, and wholesale banking. The bank has a robust presence in the U.S., extending from Maine to Florida, and holds a significant stake of 13% in Charles Schwab.

After analyzing the recent options activity related to Toronto-Dominion Bank, it is also worthwhile to consider the bank's overall market position.

Current Position of Toronto-Dominion Bank

  • Toronto-Dominion Bank is currently trading at approximately $51.94, reflecting a decrease of -1.63%.
  • Recent Relative Strength Index (RSI) readings suggest that the stock may be oversold, indicating a potential opportunity for investors.
  • The next anticipated earnings report is expected in 83 days.

What The Experts Say On Toronto-Dominion Bank

In the past month, analysts have provided ratings for the stock, with an average target price set around $77. This implies a positive outlook for Toronto-Dominion Bank.

Unusual Options Activity Detected: Smart Money on the Move

Monitoring unusual options activities can help anticipate market movements. These insights can be valuable for traders looking to leverage big money positions in the stocks they are interested in. One notable observation comes from an analyst at RBC Capital, who has reaffirmed their Sector Perform rating for Toronto-Dominion Bank, maintaining a price target of $77.

Options trading carries inherent risks but can also provide opportunities for significant returns. It is advisable for traders to continuously educate themselves, make strategic adjustments to their trades, and remain aware of market dynamics. Following real-time alerts on Toronto-Dominion Bank's options trades can be instrumental for active investors.

Banking, Options, Investing