This strategy has survived the death of the trading floor and migration to electronic trading, the rise of high-frequency trading, the popularity of ETFs and passive investing, and every other major change for the past three decades. He'll do the same exact position that is highlighted as unusual option activity. 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. Around 2,500 contracts of. Check out trade ideas from our UOA lineup: Exploring Unusual Options Activity Trade Ideas. When trying to add (or remove) a big position, these Wall Street firms will use all the tools available to them: listed exchanges, dark pool trading, and options markets. Investors are fully responsible for any investment decisions they make. Why would someone seemingly throw away a large amount of money? 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! Because of the inherent leverage that it offers, the ripples of Smart Money behavior are more easily seen by looking at options order flow than looking at trading in the stock market. Reviewed in the United States on October 26, 2020. , Reviewed in the United States on October 26, 2020. Brief content visible, double tap to read full content. Instead, it is a way of trying to tilt the odds in our favor; a way of setting up a portfolio of trades with a goal of a positive return. I absolutely loved this book. Jon and Pete Najarian pioneered Unusual Options Activity trading strategies to follow the "smart money". The ask represents the price at which someone is willing to openly sell the option. Rebels Edge 01-09-23. After all, this is still a percentage game. Meaning those cheap calls that were previously trading far out-of-the-money had appreciated by hundreds of dollars in a matter of days. Insiders offer one easy explanation for the source of unusual options activity. All of this information is publicly available as reported when trades happen. Almost 16,000 contracts . Co. Ltd. (NYSE: TSM ). It starts out with a bit of a sales pitch (expected) but then turns to a good education of what is known as the Greeks. Supporting posts: Today, shares were cut in half. Najarian jumped in and he is going to . All rights reserved. Some sites have compiled free screeners that use a one-factor model to present unusual options activity. Whoever this was, they sure did make a lucky guess. 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. And that is information that we act on. Get a custom-designed trading program tailored to your individual needs, skill level, and schedule. One of the best investment books out there, Reviewed in the United States on January 15, 2020. FOLLOW YOUR MONEY INTO JOHN AND PETES' POCKETS!- A TRUE TITLE! On February 8, it was announced that Electronic Arts was buying GLUU for $12.50 a share, a nice premium over the $10 calls that were initially purchased. Unusual options activity is how we Follow the Smart Money in our trades. Reviewed in the United States on May 20, 2020. With the stock trading below $9, there was buying of at-the-money calls. 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. And thats an exchange we are happy to make. That means, not only are they putting a lot on the line to make a bearish bet theyre predicting that the move will be big. Silvergate Capital Just Got Cut in Half. All that matters is that they might know something we dont know and that something is expected to move the price of the stock in a big way. 3 talking about this. The options he does DD on and trades almost always do well. For example, around some major news events, the implied volatility measure may prove less important. Thats where experience and added research come into play. Trading based on unusual options activity works to align our positions with those of Wall Streets Smart Money, those with insider knowledge of upcoming news or important information that can move the price of a stock. Today, shares were cut in half. Heres a glimpse at Market Rebellions unique approach to trading the UOA strategy: Our Unusual Options Activity Philosophy Explained. From there, we filter even further with a mixture of the criteria above. Jon Najarian noticed that options traders were buying the December $32 calls in Luckin Coffee Inc - ADR (NASDAQ: LK ). 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. If you are interested in trade ideas or alerts triggered by unusual options activity, here are some questions that you may want to consider before choosing a trade alert service: As mentioned above, the idea of a trade being unusual options activity based on meeting one criteria (e.g., volume of the trade is greater than open interest) is too simple. In Follow the Smart Money, Jon and Pete will teach youstep-by-stephow they trade unusual option activity every day. Jon Najarian, co-founder of Market Rebellion, explains the unintended consequences of 0 days to expiration (0DTE) options. Eventually, Pete became the President of Mercury Trading. Najarian explained that this is a bearish bet because SQQQ is the short ETF and he thinks the trade might be a protection. Traders were buying the November $49 calls in the name. We think about how the trade will perform as the price of the stock moves and time decay sets in. Supporting posts: Benzinga does not provide investment advice. Find this article helpful? Instead, they got a model of a tarp,, 8 Times Retail Traders Did Something Amazing. BTW - I dont think there is an easy way to learn the Greeks. If the open interest is 100, that means thatacross the whole marketthere are 100 long contracts and 100 short contracts. Watch our free 7-minute tutorial on how pro traders harness unusual option activity. He also noticed that traders are buying the November 35.50 calls in Pfizer Inc. PFE. It's a comprehensive process that takes more than just tracking large options trades using a free scanner. , ISBN-13 FOLLOW YOUR MONEY INTO JOHN AND PETES' POCKETS!- A TRUE TITLE! Dont miss Making Money With Charles Payne, today on Fox Business! And these are exactly the times (ahead of major market events) that they may be active. Around 2,500 contracts of the April $18 calls were traded in Nuance Communications Inc. NUAN for $1.15. In simple terms, you are looking for a trade that makes you say hmmm thats weird. Pete Najarian noticed high options activity in Quanta Services Inc (NYSE: PWR ). And were already hitting the ground running! When we present a trade idea, we dont just regurgitate the trade that triggered the alert. These positions ultimately move stock prices in big ways, but the cause and effect may not be immediate. It is written in easy to understand language and filled with real life examples and spot-on analogies. Full content visible, double tap to read brief content. 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. 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. During decades of trading this activity, Jon and Pete Najarian have honed their strategy, automating much of what they learned into a proprietary Heat Seeker algorithm that scans the order flow at all of the options exchanges. Unusual options activity is how we Follow the Smart Money in our trades. Full 30-day money back guarantee on annual subscriptions. , , . . The book is an easy read with basic concepts but there are many better books available. As small and nimble traders, we focus on capitalizing while these big funds are still amassing their market-moving position. On this page, we will give you the insiders guide to how you can identify, screen, and trade unusual options activityjust the way Jon Najarian, Pete Najarian, and a team of our Market Rebellion analysts do. Click here to explore all of our amazing FREE shows on Market Rebellion TV. Benzinga does not provide investment advice. Pete Najarian spoke about high options activity in Taiwan Semiconductor Mfg. Our Heat Seeker algorithm can make all the difference when trading unusual options activity. Heres an example from back in February 2021. Jon Najarian, a 16-year contributor to a variety of CNBC programs including Worldwide Exchange, The Halftime Report, Fast Money, and Power Lunch, has reached a mutual agreement with CNBC to discontinue his exclusive contributor contract with the network to enable him to pursue other media ventures, including building out the programming at Market Rebellion. 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. In order to get the most from UOA order flow, you have to commit to more than a few trades. 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. Click here and well match you with a personalized recommendation. 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). What are the filters that the options activity goes through before it is presented as a trade idea? 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. 2023 Market Rebellion, LLC. It starts out with a bit of a sales pitch (expected) but then turns to a good education of what is known as the Greeks. Instead, they got a model of a tarp,, 1 Primary Trade Idea + Bonus Trades Per Week, LIVE Q&A Session With Lead Instructor Bill Johnson, 8 Times Retail Traders Did Something Amazing. 2023 Benzinga.com. That announcement caused shares of Activision to soar by 26%. Everyone is looking for an edge in the market. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. Just like a polar bear walking on a beach. Insiders offer one easy explanation for the source of unusual options activity. Knowing what weve described about unusual options activity, the profile of the perfect trade is likely obvious. Traders were buying the January $48 calls. Remember, were looking for activity that Smart Money traders are making. You could use this to actually learn to trade using the Greeks but it wont be a walk in the park it will take you much concerted effort, like being in school, but it is all there. Around 10,000 contracts of the November 35.50 calls were trade and there was also some volume in puts, but Pete Najarian sees the put options activity in Pfizer as protection buying. Every day, Market Rebellions Heat Seeker algorithm flags dozens of potential trades. As always, thanks for being part of this growing Rebellion of traders. Najarian Brothers See Unusual Option Activity in $MGM, $DBX, $LVS & $ASHR Read more:. Learn more. Starting in March 2022, we began identifying unusual call buying in social media giant Twitter (TWTR). Market Rebellion has unusual options activity trading services designed for a wide range of experience levels. Using your mobile phone camera - scan the code below and download the Kindle app. Pete Najarian loves the risk-reward for the trade and he decided to jump in the trade. 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. Please try again. This book is totally worthless even if you only pay$9.95 for shipping and handling. Supporting posts: As an options trader, you have many different options for finding trade ideas. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. Surprisingly informative. This volume was far higher than the open interest meaning this position was a new opening trade. Follow The Smart Money - Unusual Option Activity - #1 Way We Choose Our Trades, Publisher , . Inside each of these categories, there are dozens of different strategiesmost of which go in and out of favor. With the stock trading below $9, there was buying of at-the-money calls. When Wall Street moves into (or out of) a company, sector, or theme, the smaller options market is often the first place its noticeable. Around 4,000 contracts of the January $43 calls were traded for about $1.10. If you are someone who doesnt learn easily , doesnt commit, or are lazy, dont kid yourself, dont buy. Access daily UOA with trade ideas filtered by our pro analysts former market makers Ryan Mastro & Wayne Razzi. Pete Najarian has also bought these. Howd that play out? Theres fundamental research, technical analysis, and order flow analysis. However, a more common unusual options activity trigger is not so obvious. Starting in November 2020, we started flagging buying in GLUU, with activity in March and June. First, well define what makes options activity unusual. Traders paid around 20 cents for them. Check out Unusual Option Activity Pro. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. 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. I highly recommend it. Whats that mean in practice? Read instantly on your browser with Kindle for Web. It is simply a measure of how many times a given security exchanged hands. To trade unusual options activity, you have to get to the heart of what exactly makes a trade unusual. Howd that play out? 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). Almost 30,000 contracts were traded in the first half of the session. Jon Najarian Leaves CNBC to Chart New Rebellious Horizons. Klicken Sie auf Alle ablehnen, wenn Sie nicht mchten, dass wir und unsere Partner Cookies und personenbezogene Daten fr diese zustzlichen Zwecke verwenden. All Rights Reserved. Tesla investors were hoping for announcements about the highly anticipated Model 2. There are many different ways to find trade ideas. But that was nothing compared to these call options, which gained 11-times their value immediately following the event. Najarian jumped in the trade and he is going to . He thinks they are honest and it's his fault, and no doubt he bears personal responsibility for making trades. Bring your club to Amazon Book Clubs, start a new book club and invite your friends to join, or find a club thats right for you for free. Jon Najarian saw unusual activity in Aimmune Therapeutics Inc (NASDAQ: AIMT ). It was worth the price. Remember, Smart Money traders could be company insiders trading on inside information or institutional traders building large positions. These nuances, like determining the difference between a hedge and an outright directional bet, are why those free, single-factor scanners pale in comparison to the Heat Seeker algorithm and Market Rebellions team of options experts. 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. All Rights Reserved. In other words, the trade clearly doesnt make sense. Click here for our 3 keys to identifying potential unusual options activity in any market. : 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. Market Rebellion specializes in unusual options activity trade ideas. Reviewed in the United States on May 4, 2021. 3) They Are On CNBC All The Time The reason the Najarian brothers have so much credibility is they appear on Fast Money on CNBC. Tune in at 3pm ET as Jon highlights three stocks the smart money could be buying or selling via UOA, each day before the closing bell. , Yahoo, Yahoo. The trade breaks even at $19.15 or 9.12% above the current stock price. For example, around some major news events, the implied volatility measure may prove less important. 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. He already owns the stock and he believes it has some upside potential, because it's lagging behind Wynn Resorts, Limited WYNN. Its a comprehensive process that takes more than just tracking large options trades using a free scanner. It's mostly biographies of these crooks. Jon and Pete Najarian have traded UOA for more than 30 yearsfrom when they were on the floor of the Chicago Board Options Exchange (CBOE) to today. Ready to trade? Tell us a little bit more about yourself and we can help you come up with a personalized trading plan to connect you with the options education or trade ideas that will help you reach your trading goals. Lofty Expectations Meet Lofty Valuations at Teslas 2023 Investor Day. Insiders Guide: How to Trade Unusual Options Activity. The trade breaks even at $49.80 or 1.78% above the closing price on Thursday. I highly recommend it. 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). 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. The dirty secret on Wall Street is that often news leaks, of earnings reports, upgrades or downgrades, drug trials, or other major, market-moving news, in advance of the news becoming public. But the one method for finding trade ideas that has stood the test of time, in our experience, is unusual options activity. 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. Full content visible, double tap to read brief content. Its really in how these multiple factors come together as one that makes a trade truly unusual. Never miss our contentlet us deliver it right to your inbox. Jon and Pete Najarian pioneered Unusual Options Activity trading strategies to follow the smart money. Lets take a look at a few recent examples. Lets keep up the momentum and start this next chapter with a BANG! 2023 Benzinga.com. Your recently viewed items and featured recommendations. One of the best investment books out there, Reviewed in the United States on January 15, 2020. A lot of game changing information. Reviewed in the United States on May 20, 2020. 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. It might. And to do that, they have to try to mask their activity. During decades of trading this activity, Jon and Pete Najarian have honed their strategy, automating much of what they learned into a proprietary Heat Seeker algorithm that scans the order flow at all of the options exchanges. To calculate the overall star rating and percentage breakdown by star, we dont use a simple average. There was a problem loading your book clubs. Reviewed in the United States on June 6, 2020, Reviewed in the United States on April 1, 2021. Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. Ultimately, the stock kept surging from the $9 price point to above $60, before its price eventually fell back to earth. One or two results are not indicative of the power of this strategy over the long term. 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. So, you may ask, why do we want to follow Smart Money?. Volume alone is not enough to identify potential insider moves. True, that is a necessary condition of unusual options activity, but its not sufficient to trade off of the order flow. Learn the #1 way that Jon and Pete Najarian choose their trades all laid out in an easy-to-understand format. Please try again. The Narajian brothers have capture their experiences identifying option trade opportunities and execute them. The Najarian brothers bring a unique perspective to trading that is built upon excellence in sports and education.Follow the Smart Money is a page turner and will open your eyes towards better strategic trading. Submit your email and well send you an article that takes you deep inside the minds of our UOA analysts. This is the date by which an option either has to be exercised or the contract is void. It might. Please try again. This doesnt mean that all of these trades are actionable. True, that is a necessary condition of unusual options activity, but it is not sufficient to trade off of the order flow. 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). Watch and see how we follow the Smart Money with Unusual Option Activity. It also analyzed reviews to verify trustworthiness. If there is about to be a phase 3 drug trial announcement, it wouldnt be unusual to see implied volatility very high. Need a little brightness in your day? 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. In order to get the most from UOA order flow, you have to understand that this is a percentage game. What would you like me to ask @jonnajarian on Wednesday?