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It doesnt mean that the stock price will move. He explained that traders were buying the November 24 calls Monday. Is there a methodology to controlling risk in the trade? A company may release great news and have the stock price barely budge or even go down. If you are interested in unusual options activity because of exponential gains from front-running potential news, thats normal. Lofty Expectations Meet Lofty Valuations at Teslas 2023 Investor Day. Last week, Market Rebellion identified thousands of bearish puts bought in Silvergate Capital. Instead, they got a model of a tarp,, 8 Times Retail Traders Did Something Amazing. You recognize that you are not required to provide this consent as a condition of purchase and that you can withdraw consent at any time. Investors are fully responsible for any investment decisions they make. BTW - I dont think there is an easy way to learn the Greeks. Why would someone seemingly throw away a large amount of money? This activity is particularly ripe for trade ideas. You're listening to a sample of the Audible audio edition. The dirty secret on Wall Street is that often news leaks, of an earnings report, upgrades or downgrades, drug trials, or other major, market-moving news, in advance of the news becoming public. Get real-time UOA trading insights and LIVE-market analysis throughout each trading day as part of our community of elite traders. Besides the fact that the volume is high, the fact that it exceeds open interest tells us without a doubt that the trade is an opening order. If a trade is a large notional dollar amount, traded on the offer, with high volume that exceeds open interest, well out-of-the-money, and a small likelihood of the price naturally reaching there as it relates to implied volatility, then that trade is certainly unusual. He thinks they are honest and it's his fault, and no doubt he bears personal responsibility for making trades. Around 3,000 contracts of the October $19.50 calls in Under Armour Inc Class A (NYSE: UAA) were traded in the first half on Wednesday. Howd that play out? Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. The initial announcement from Elon caused Twitters stock to rally from roughly $39 per share to a high of over $54 in just 3 trading sessions. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. This is not a waste of time. Please try again. 2023 Market Rebellion, LLC. Their goal is to be inconspicuous. There are other factors that could make it less unusual. Whats that mean in practice? It is written in easy to understand language and filled with real life examples and spot-on analogies. It has weathered the test of time and continues to perform as a reliable indication of where the Smart Money is investing. On CNBC's "Fast Money Halftime Report," Pete Najarian said options traders were buying the Sept. $9 calls in Bed Bath & Beyond Inc. (NASDAQ: BBBY). Unusual options activity is an order flow strategy. It has weathered the test of time and continues to perform as a reliable indication of where the Smart Money is investing. Below is a chart that maps the likelihood flagged activity will trigger an unusual options activity trade idea based on the factors that we use as inputs in the unusual options activity scanner. The book is an easy read with basic concepts but there are many better books available. A company may release great news and have the stock price barely budge or even go down. The Najarian brothers bring a unique perspective to trading that is built upon excellence in sports and education. Benzinga does not provide investment advice. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. Taiwan Semiconductor Manufacturing Company Limited, UPDATE 1-China underlines key role of coal amid energy security drive, WRAPUP 1-China sets modest growth target of about 5% as parliament opens, UPDATE 1-Nations secure U.N. global high seas biodiversity pact, UPDATE 1-Another Norfolk Southern train derails in Ohio, railroad says no toxins aboard, China to guard against risks in property market - Premier Li. This strategy has survived the death of the trading floor and migration to electronic trading, the rise of high-frequency trading, popularity of ETFs and passive investing, and every other major change for the past three decades. Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them. Lets keep up the momentum and start this next chapter with a BANG! But, unusual options activity isnt a magic bullet. Jon Najarian has reached a mutual agreement with CNBC to discontinue his exclusive contributor contract here's where you can watch him now. Open interest is measured once a day at the end of the day. If that order appears paired with a stock transaction, for instance, it could be a hedging transaction. Theres fundamental research, technical analysis, and order flow analysis. The stock had fallen more than 25% in just six weeks prior to this purchase but this big buyer of 6,000 out-of-the-money February calls (bought as part of a spread) wasnt deterred. Unusual options activity is not a full-proof method to trading stocks. 01:12 Wed, Dec 28 2016 2:36 PM EST Jon and the entire team are very excited about this opportunity to open new doors and better serve traders like you. The market may be expecting a large move. Insiders offer one easy explanation for the source of unusual options activity. This volume was far higher than the open interest meaning this position was a new opening trade. Expiration date: All options have expiration dates. FOLLOW YOUR MONEY INTO JOHN AND PETES' POCKETS!- A TRUE TITLE! Benzinga does not provide investment advice. But, you should also realize that this is still a probability-based analysis. Thats an exchange we are happy to make. The stock rose, and more and more unusual options activity appeared. This book is totally worthless even if you only pay$9.95 for shipping and handling. , ISBN-13 Heres an example from February 2021. It is written in easy to understand language and filled with real life examples and spot-on analogies. Theres nothing wrong with that; its just not unusual options activity. In the meantime, be sure to follow Jons regularly scheduled, Rebellion-exclusive shows inside the Rebel Hub. Below is a chart mapping the likelihood that flagged activity will trigger an unusual options activity trade idea based on the factors that we use as inputs in the unusual options activity scanner. Whether this trade in ZEN was made by an insider who knew about the acquisition ahead of its press release, or by an institutional trader with access to powerful research tools that we as individual retail traders cant use, the point is the same: monitoring unusual options activity is the only way to get inside the minds (and wallets) of the Wall Street elite. More than 10,000 contracts of the October $15 calls were traded for 20 cents in the first half of the session. This is a perfect example of how powerful unusual options activity can be. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. Remember, were looking for activity that Smart Money traders are making. These can be a good place to start, but are often cluttered with a lot of noise, like hedges and multi-legged option strategies, that can lead you astray. All investments involve risk, and the past performance of a security, Digital Asset, industry, sector, market, financial product, trading strategy, or individuals trading does not guarantee future results or returns.Investors are fully responsible for any investment decisions they make. The market can (and will) do what the market wants. Jon and Pete Najarian pioneered Unusual Options Activity trading strategies to follow the "smart money". Learn more. By April 14th, Musk stunned everyone by making an offer to buy the remaining shares of TWTR at $54.20 apiece. Reviewed in the United States on October 26, 2020. Najarian options activity on CNBC halftime report don't reflect strategy presented in this book. I highly recommend it. On February 8, it was announced that Electronic Arts (EA) was buying GLUU for $12.50 a share, a nice premium over the $10 call options that were initially purchased. Sponsored. What would you like me to ask @jonnajarian on Wednesday? Click here to explore all of our amazing FREE shows on Market Rebellion TV. Need a little brightness in your day? These leveraged equity instruments give someone the right (but not the obligation) to buy or sell a security at a specific price on a specific date. If the open interest is 1, that means that there is one long contract AND one short contract. Every time he tells me about Pete and John's unusual call option activity it ALWAYS ranks. As discussed above, the term we use for Smart Money could be company insiders trading on inside information or institutional firms building large positions. It tells you almost nothing about investing and and gives them a chance to BOMBARD your Email inbox with get rich quick(FOR JOHN AND PETE)) offers. Follow the Smart Money is a page turner and will open your eyes towards better strategic trading. 2023 Benzinga.com. Almost 16,000 contracts . SEIZE CONTROL OF YOUR FINANCIAL DESTINY - Get a . By clicking Get Access, you agree to receive marketing offers from Market Rebellion, and its affiliates, subsidiaries, or agents in the form of emails, pre-recorded messages, text messages, and autodialed calls at the email address and phone number provided above, even if the phone number is present on a state or national Do Not Call list. Starting in 2021, our Heat Seeker algorithm spotted consistent activity in Tilray, one of the leading marijuana stocks. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. (We discuss why this is in further detail in the Why do we trade unusual options activity section below.). Around 5,000 contracts of the December $49 calls in Metlife Inc (NYSE: MET) were traded for 80 cents. Please try again. All rights reserved. Explore unusual options activity memberships from Market Rebellions best in the business trades: Our services and education products provide information from Jon Najarian, Pete Najarian and our team of analysts and educators on trading options and securities as well as cryptocurrencies, tokens and coins (together Digital Assets). Reviewed in the United States on October 19, 2020. Rise and shine with a fresh cup of the hottest premarket news and biggest early-morning movers each day all in one rapid-fire minute with DRJ himself. All investments involve risk, and the past performance of a security, Digital Asset, industry, sector, market, financial product, trading strategy, or individuals trading does not guarantee future results or returns. Learn how you can follow the Smart Money with a fresh UOA trade idea each week including technical levels so that you know where to enter and exit! Thats where experience and added research come into play. Reviewed in the United States on May 4, 2021. Theyll be talking options trading as they break down the latest market action in the midst of a jam-packed week of earnings. If youre looking to trade UOA, you came to the right place. One example, we frequently buy higher delta calls or puts than the triggering trade (or may even put them on as a vertical spread instead of an outright call/put purchase). Their goal is to be inconspicuous. Dont be stupid though. Can't wait one of best on the street and a nice guy to boot. : SEIZE CONTROL OF YOUR FINANCIAL DESTINY - Get a custom-designed educational package tailored to your individual trading needs, skill level, and schedule. After viewing product detail pages, look here to find an easy way to navigate back to pages you are interested in. Full 30-day money back guarantee on annual subscriptions. If there is about to be a phase 3 drug trial announcement, it wouldnt be unusual to see implied volatility very high. Bei der Nutzung unserer Websites und Apps verwenden wir, unsere Websites und Apps fr Sie bereitzustellen, Nutzer zu authentifizieren, Sicherheitsmanahmen anzuwenden und Spam und Missbrauch zu verhindern, und, Ihre Nutzung unserer Websites und Apps zu messen, personalisierte Werbung und Inhalte auf der Grundlage von Interessenprofilen anzuzeigen, die Effektivitt von personalisierten Anzeigen und Inhalten zu messen, sowie, unsere Produkte und Dienstleistungen zu entwickeln und zu verbessern.