Stock Block Trades

Stock Block Trades Part 2


We continue our discussion about large stock block trades.

The block trades can be isolated into 2 sections. All the trades below the current price and all the trades above the current price. We can then analyze the trades in aggregate. To get a sense of the current support and resistance, we can calculate the VWAP price of the block trades below last price and above last price. This will indicate the spread or distance between support and resistance. We can also compare the number of trades, volume and notional dollar amount traded below and above the last price. The idea is to gauge the level and size of the support and resistance levels. In addition, we can compare how the block trades are progressing over time by comparing the previous day support and resistance levels to the current day.