2023 Benzinga.com. You're listening to a sample of the Audible audio edition. Reviewed in the United States on May 20, 2020. Try Unusual Option Activity Essential. He already owns the stock and he believes it has some upside potential, because it's lagging behind Wynn Resorts, Limited WYNN. 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. Each day, Jon Najarian gives three UOA trade ideas live in [emailprotected] with Jon Najarian. He also spoke about unusual activity in AbbVie Inc ABBV. Silvergate Capital Just Got Cut in Half. Traders were buying the November $49 calls in the name. It was worth the price. Jon Najarian noticed that options traders were buying the December $32 calls in Luckin Coffee Inc - ADR (NASDAQ: LK ). If you would like to customise your choices, click 'Manage privacy settings'. Follow The Smart Money - Unusual Option Activity - #1 Way We Choose Our Trades, Publisher 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. FOLLOW YOUR MONEY INTO JOHN AND PETES' POCKETS!- A TRUE TITLE! Follow The Smart Money - Unusual Option Activity - #1 Way We Choos - VERY GOOD. 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). Target Option Traders Turn Bearish Following Big Holiday Shopping Weekend, Do Not Sell My Personal Data/Privacy Policy. 2023 Benzinga.com. So, how exactly do you pinpoint unusual options activity amid such volume and noise? This doesnt mean that all of these trades are actionable. I absolutely loved this book. The book is an easy read with basic concepts but there are many better books available. 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. Whilst the Najarian brothers did create a reliable algorithm that detects changes in trading volume, but they and Cramer are just hired to hype up the market or redirecting attentions away from some industries 3 More posts you may like Join 22 days ago You may find other books as helpful and maybe more so but this is a good introduction. Last week, Market Rebellion identified thousands of bearish puts bought in Silvergate Capital. As individual traders, we focus on capitalizing while these big funds are still amassing their market-moving position. 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. This article was last updated on 11/30/2022. Around 5,000 contracts of the December $49 calls in Metlife Inc (NYSE: MET) were traded for 80 cents. Pete Najarian noticed a big volume in the December $20 calls in JetBlue Airways Corporation JBLU. This is not a waste of time. Please don't even THINK ABOUT BUYING! However, the one strategy that has stood the test of time, in our experience, is using unusual options activity to find trade ideas. 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. When we present a trade idea, we dont just regurgitate the trade that triggered the alert. 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. FOLLOW THE SMART MONEY Unusual Option Activity JON & PETE NAJARIAN BOOK NEW. Watch our free 7-minute tutorial on how pro traders harness unusual option activity. It is written in easy to understand language and filled with real life examples and spot-on analogies. Market Rebellion has unusual options activity trading services designed for a wide range of experience levels. Their goal is to be inconspicuous. Lets say that we see 10,000 put options are purchased versus open interest of 250 contracts. Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. It also analyzed reviews to verify trustworthiness. I highly recommend it. Open interest: Open interest is the amount of contracts outstanding in the market. Check out trade ideas from our UOA lineup: Exploring Unusual Options Activity Trade Ideas. Three Keys to Identifying UOA. Lets keep up the momentum and start this next chapter with a BANG! For example, popular ones look at the ratio of volume to open interest in a particular option. The Najarian brothers bring a unique perspective to trading that is built upon excellence in sports and education. For example, we like to see high volume relative to open interest. Is it going to require an update to the VIX calculation? Surprisingly informative. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. Try again. The breakeven for the trade is at. When done properly and viewed in the context of a complete portfolio, however, it can be a powerful tool for your portfolio. As always, thanks for being part of this growing Rebellion of traders. Its really in how these multiple factors come together as one that makes a trade truly unusual. This book is totally worthless even if you only pay$9.95 for shipping and handling. Options are leveraged instruments that give equity traders the right (but not the obligation) to buy or sell a stock at a specific price on a specific date. Instead, our system considers things like how recent a review is and if the reviewer bought the item on Amazon. In Follow the Smart Money, Jon and Pete will teach youstep-by-stephow they trade unusual option activity every day. Traders were buying the November $49 calls in the name. Heres an example from back in February 2021. The orange dots indicate what we call unusual unusual options activity. He also covers . Want unusual option activity trade ideas delivered to you every day? , ISBN-13 As an options trader, you have many different options for finding trade ideas. There are other factors that could make it less unusual. Data rates may apply. And thats an exchange we are happy to make. However, options markets are still relatively small. Knowing what weve described about unusual options activity, the profile of the perfect trade is likely obvious. Looking at it this way makes the perfect unusual options activity trade profile a little more obvious. This doesnt mean that all of these trades are actionable. Submit your email and well send you an article that takes you deep inside the minds of our UOA analysts. Co. Ltd. (NYSE: TSM ). Supporting posts: It takes analysis and work, and then proper position sizing and management. 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. The bid represents the price at which someone is willing to openly buy the option. So, you may ask, why do we want to follow Smart Money?. It's mostly biographies of these crooks. 2019 Benzinga.com. Well keep you informed about all the additional, exciting developments on the horizon as updates emerge. 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. The market is too big and too humbling for us to expect that. In general, its traders or investors with a lot of resources and critically information that we dont have as individuals. FOLLOW YOUR MONEY INTO JOHN AND PETES' POCKETS!- A TRUE TITLE! Pete Najarian has also bought these. Please try again. Lofty Expectations Meet Lofty Valuations at Teslas 2023 Investor Day. Insiders Guide: How to Trade Unusual Options Activity. In the options market, thats a trade that stands out so much you cant help but notice it; a trade or, more frequently, a series of trades with essentially no reasonable explanation other than someone must know the stock price is going in one direction or the other. 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. Dont be stupid though. Shares of ZEN shot up 50% on the news, and these options contracts (originally bought for between $0.70 and $0.75) would go on to trade as high as $5.80 per contract. Around 2,500 contracts of the April $18 calls were traded in Nuance Communications Inc. NUAN for $1.15. She is a popular actress, and was featured in the show Wall Street . While there is a formula, it is not exactly straightforward. Unusual options activity is not a full-proof method to trading stocks. Ready to trade? They picked the $15.50 strike, although the price has already jumped above that level. Then, well reveal why we use this trading strategy and how you too can find and screen trade ideas. The stock rose, and more and more unusual options activity appeared. Thats an exchange we are happy to make. We are sorry. A company may release great news and have the stock price barely budge or even go down. Dont be stupid though. That announcement caused shares of Activision to soar by 26%. Reviewed in the United States on June 6, 2020, Reviewed in the United States on April 1, 2021. Yes, that means we pay more than if we bought out-of-the-money options, but it also means that we lower the amount of potential profitability. 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. If the open interest is 100, that means thatacross the whole marketthere are 100 long contracts and 100 short contracts. But that was nothing compared to these call options, which gained 11-times their value immediately following the event. 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. In order to get the most from UOA order flow, you have to understand that this is a percentage game. There are many different ways to find trade ideas. Its more challenging than just viewing where big money flows are going. Every day, Market Rebellions Heat Seeker algorithm flags dozens of potential trades. 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. Your recently viewed items and featured recommendations. 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. Is there a methodology to controlling risk in the trade? Najarian followed the trade and he is going to hold the position until the December expiration. It is written in easy to understand language and filled with real life examples and spot-on analogies. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. 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 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. In effect, it is a gauge of interest in the contract at any point in time. This can be any combination of opening trades and closing trades. If youre looking to trade UOA, you came to the right place. And these are exactly the times that they may be active. Jon and Pete Najarian are well known traders to CNBC viewers, and their Fast Money Halftime segment on 'unusual options activity' is the highest rated segment of the day on CNBC. Speaking on CNBC's "Fast Money Halftime Report", Pete Najarian said he noticed unusually high options volume in Melco Resorts & Entertainment Ltd(ADR) MLCO. Were giving up the possibility of home run trades in exchange for what we hope are more doubles and triples. 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. Not sure where to start? Brief content visible, double tap to read full content. The orange dots indicate what we call unusual unusual options activity. He'll do the same exact position that is highlighted as unusual option activity. Heres an example from February 2021. For example, we like to see high options volume relative to open interest. Learn more how customers reviews work on Amazon. Jon and Pete Najarian pioneered Unusual Options Activity trading strategies to follow the smart money. Top subscription boxes right to your door, 1996-2023, Amazon.com, Inc. or its affiliates, Learn more how customers reviews work on Amazon. 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. Jon Najarian has reached a mutual agreement with CNBC to discontinue his exclusive contributor contract here's where you can watch him now. Pete Najarian noticed a big volume in the December $20 calls in JetBlue Airways Corporation JBLU . MILLIONS of options contracts are traded every day in the US. Instead, its 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. : Can is the operative word. For example, around some major news events, the implied volatility measure may prove less important. Finally, well give you a sneak peek at our unusual options activity trade alerts and connect you with additional resources to learn more. 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. Someone is making a big bet (1,000,000 share equivalent) in the direction of the price. Traders paid around 20 cents for them. 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. Unusual options activity is an order flow strategy. Follow the Smart Money is a page turner and will open your eyes towards better strategic trading. Full 30-day money back guarantee on annual subscriptions. Najarian jumped in and he is going to . Watch each day as Jon Najarian gives you three UOA trade ideas live in [emailprotected] with Jon Najarian. Jon and the entire team are very excited about this opportunity to open new doors and better serve traders like you. Follow the Smart Money is a page turner and will open your eyes towards better strategic trading. See Terms of Use for details. Sie knnen Ihre Einstellungen jederzeit ndern, indem Sie auf unseren Websites und Apps auf den Link Datenschutz-Dashboard klicken. Do Not Sell My Personal Data/Privacy Policy. 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. Specifically, we will define what makes options activity unusual, tell you why we trade this strategy, how you can find and screen trade ideas, provide you with an overview of trade alerts, and then connect you with additional resources to learn more. 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. Our Heat Seeker algorithm can make all the difference when trading unusual options activity. 4 people found this helpful Helpful Report abuse S1Guy Better than expected Reviewed in the United States on May 20, 2020 If there is about to be a phase 3 drug trial announcement, it wouldnt be unusual to see implied volatility very high. Get real-time UOA trading insights and LIVE-market analysis throughout each trading day as part of our community of elite traders. Click here for our 3 keys to identifying potential unusual options activity in any market. Insiders offer one easy explanation for the source of unusual options activity. Starting in November 2020, we started flagging buying in GLUU, with activity in March and June. It takes analysis and work, and then proper position sizing and management. 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. Amazon has encountered an error. 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. 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. Whats that mean in practice? At the time, Twitters share price had been cut in half from its $80 all-time high reached in February of 2021. GLUU is a stock that often flies under the radar of most traders so when we saw these colossal back-to-back option trades, we flagged it immediately for its highly bullish sentiment. 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. BTW - I dont think there is an easy way to learn the Greeks. He followed the trade and he is going to hold . Revealed: The Smart Money Behind Techs Big Run. A lot of game changing information. Why would someone seemingly throw away a large amount of money? That means if youre planning on trading unusual options activity, you need to make sure youre looking at the whole picture by applying additional filters. This is a perfect example of how powerful unusual options activity can be. It doesnt mean that the price of the stock will move. Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. Then, on April 4th, renowned Tesla (TSLA) CEO Elon Musk disclosed that he had acquired a 9.2% stake in the company. Dont Make These Rookie Mistakes with UOA. But, you should also realize that this is still a probability-based analysis. Silvergate Capital Just Got Cut in Half. Unusual options activity is how we Follow the Smart Money in our trades. This is the date by which an option either has to be exercised or the contract is void. 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. $9.99. . In the meantime, be sure to follow Jons regularly scheduled, Rebellion-exclusive shows inside the Rebel Hub. Want a daily dose of unusual options activityabsolutely free? See Also: Todd Gordon's Starbucks Options Trade. 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. Specific securities or Digital Assets are mentioned for educational and informational purposes only. With the stock trading below $9, there was buying of at-the-money calls. One of the best investment books out there, Reviewed in the United States on January 15, 2020. Howd that play out? It is written in easy to understand language and filled with real life examples and spot-on analogies. 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. Najarian jumped in and. In even simpler terms, youre looking for a polar bear walking on a beach. I especially enjoyed the chapter on The Greeks, which I thought was a thorough and clear explanation, and the relatable comparison of a call option to a rain-check.