. , . Last week, Market Rebellion identified thousands of bearish puts bought in Silvergate Capital. Pete Najarian loves the risk-reward for the trade and he decided to jump in the trade. Silvergate Capital Just Got Cut in Half. The breakeven for the trade is at. 2023 Market Rebellion, LLC. Last week, Market Rebellion identified thousands of bearish puts bought in Silvergate Capital. If you are interested in unusual options activity because of exponential gains from front-running potential news, thats normal. However, most unusual options activity alerts dont neatly check all of the boxes on the above list. It's a comprehensive process that takes more than just tracking large options trades using a free scanner. Brief content visible, double tap to read full content. 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). It doesnt mean that the stock price will move. Market Rebellions reference to specific securities or Digital Assets should not be construed as a recommendation to buy, sell or hold that security or Digital Asset. Using your mobile phone camera - scan the code below and download the Kindle app. Starting in November 2020, we started flagging buying in GLUU, with activity in March and June. 2023 Benzinga.com. See Also: Todd Gordon's Starbucks Options Trade. But theres another explanation for the Smart Money in unusual options activity: Wall Street hedge funds, pension funds, and other big money traders amassing huge positions. Whats that mean in practice? Top subscription boxes right to your door, 1996-2023, Amazon.com, Inc. or its affiliates, Learn more how customers reviews work on Amazon. It has weathered the test of time and continues to perform as a reliable indication of where the Smart Money is investing. Like stocks, options have two prices: a bid and an ask. Get real-time UOA trading insights and LIVE-market analysis throughout each trading day as part of our community of elite traders. Watch our free 7-minute tutorial on how pro traders harness unusual option activity. This is not a waste of time. Jon and the entire team are very excited about this opportunity to open new doors and better serve traders like you. Try again. There are a number of ways that a trade can be unusual: volume, open interest, the date of expiration, the strike price, and the price paid. After viewing product detail pages, look here to find an easy way to navigate back to pages you are interested in. Specific securities or Digital Assets are mentioned for educational and informational purposes only. Three Keys to Identifying UOA. When we present a trade idea, we dont just regurgitate the trade that triggered the alert. And these are exactly the times (ahead of major market events) that they may be active. However, options markets are still relatively small. Then, on April 4th, renowned Tesla (TSLA) CEO Elon Musk disclosed that he had acquired a 9.2% stake in the company. Not only did they nail the bottom in this high-volatility name they got in just weeks before Microsoft (MSFT) would announce that they were planning to acquire ATVI for $95 per share. On CNBC's "Fast Money Halftime Report," Jon Najarian said traders were aggressively buying the December $15.50 calls in Teck Resources Ltd TECK on Wednesday. Free shipping. It might. In Follow the Smart Money, Jon and Pete will teach youstep-by-stephow they trade unusual option activity every day. Volume alone is not enough to identify potential insider moves. Co. Ltd. (NYSE: TSM ). If you are ready to get started trading unusual options activity, then tell us a little bit more about yourself in order for us to come up with a personalized trading plan to connect you with the options education or trade ideas that will help you reach your goals. Click here and well match you with a personalized recommendation. What would you like me to ask @jonnajarian on Wednesday? 2023 Benzinga.com. Find this article helpful? Then, well reveal why we use this trading strategy and how you too can find and screen trade ideas. We feel this agreement best positions Market Rebellion to expand our industry-leading content and provide even more insight to empower individual traders in the Rebel community. It looks at where options (calls or puts) are being bought, primarily compared against historic or normal levels. Najarian jumped in and. It is a how to guide that shares . $4.39. Strike price: The price at which an option allows the holder to buy (calls) or sell (puts) the underlying stock is called the strike price. That means someone is making an unusually big bet (1,000,000 share equivalent) in the direction of the price. Reviewed in the United States on October 19, 2020. In simple terms, you are looking for a trade that makes you say hmmm In even simpler terms, you are looking for a polar bear walking on a beach. 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. Find out how they put the odds of success more in their favor by: How Rebels Trade Unusual Options Activity. I highly recommend it. There are other factors that could make it less unusual. This is the date by which an option either has to be exercised or the contract is void. Click here to explore all of our amazing FREE shows on Market Rebellion TV. There are a number of ways that a trade can be unusual: option trading volume, open interest, the date of expiration, the strike price, and the price paid. Today, shares were cut in half. One or two results are not indicative of the power of this strategy over the long term. By looking at options activity, we can see the footprints of how the Smart Money (institutional investors, hedge funds, and potentially even insider traders) are moving before the rest of the market does. And when news leaks, there are some greedy insiders who try to take advantage. On CNBC's "Fast Money Halftime Report," Jon Najarian said that someone bought a lot of calls in Abercrombie & Fitch Co. (NYSE: ANF) on Wednesday. With the stock trading below $9, there was buying of at-the-money calls. Jon and Pete Najarian pioneered Unusual Options Activity trading strategies to follow the "smart money". Every day, Market Rebellions Heat Seeker algorithm flags dozens of potential trades. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. Think youre ready to get started trading unusual options activity? Over 10,000 contracts were traded in the first half of the session and Najarian followed the trade. Its really in how these multiple factors come together as one that makes a trade truly unusual. The market may be expecting a large move. Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. There is fundamental research, technical analysis, and order flow analysis. 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. To trade unusual options activity, you have to get to the heart of what exactly makes a trade unusual. 4 people found this helpful Helpful Report abuse S1Guy Better than expected Reviewed in the United States on May 20, 2020 !The legend is coming to Making Money. Amazon has encountered an error. We think about how the trade will perform as the price of the stock moves and time decay sets in. Whether that something is an upcoming acquisition or news on a successful (or unsuccessful) drug trial, it doesnt matter. Market Rebellions reference to specific securities or Digital Assets should not be construed as a recommendation to buy, sell or hold that security or Digital Asset. Jon Najarian saw unusual activity in Aimmune Therapeutics Inc AIMT.When the stock was trading at $25, options traders began buying the December $30 calls. On CNBC's "Fast Money Halftime Report," Jon Najarian said he saw unusually high options activity in the Nov. $39 calls in iShares FTSE/Xinhua China 25 Index (NYSE: FXI ). Whats that mean in practice? He explained that traders were buying the November 24 calls Monday. Price paid: The price paid is how much the option buyer paid for the option. Remember, Smart Money traders could be company insiders trading on inside information or institutional traders building large positions. If a trade is a large notional dollar amount, traded on the offer, with high options 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. Is there a methodology to controlling risk in the trade? 3 talking about this. Yes, that means that we pay more than if we bought out-of-the-money options, but it also means that we lower the amount of potential profitability. We think about how the trade will perform as the price of the stock moves and time decay sets in. This is not a waste of time. However, unusual options activity isnt a magic bullet. Pete Najarian has also bought these calls and he is going to hold them through the expiration. One or two results are not indicative of the power of this strategy over the long term. 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. Volume alone is not enough to identify potential insider moves. That announcement caused shares of Activision to soar by 26%. This article was last updated on 11/30/2022. 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. Thats where experience and added research come into play. For example, popular ones look at the ratio of volume to open interest in a particular option. $9.99. All rights reserved. From identifying the trade, to confirming if its unusual, to choosing the right options strategy, youll learn how to do it the way they do it. Howd that play out? If youre looking to trade UOA, you came to the right place. Jon & Pete Najarian are the unusual options activity pioneers. Tesla investors were hoping for announcements about the highly anticipated Model 2. This can be any combination of opening trades and closing trades. Revealed: The Smart Money Behind Techs Big Run. For any given expiration date, there can be any number of strike priceswhich are either in-the-money or out-of-the-money relative to the price at which the stock is trading. In other words, the trade clearly doesnt make sense. By clicking below, you also agree to our Terms of Use and acknowledge our Privacy Policy. Please try again. Access daily UOA with trade ideas filtered by our pro analysts former market makers Ryan Mastro & Wayne Razzi. A lot of game changing information. 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. Pete Najarian noticed a big volume in the December $20 calls in JetBlue Airways Corporation JBLU. Why would someone seemingly throw away a large amount of money? But, unusual options activity isnt a magic bullet. Lets take a look at a few recent examples.
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