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. You may find other books as helpful and maybe more so but this is a good introduction. It is a how to guide that shares . Get real-time UOA trading insights and LIVE-market analysis throughout each trading day as part of our community of elite traders. The market is too big and too humbling for us to expect that. In other words, the trade example above depicts volume, volatility, and velocity three of Jon & Petes favorite metrics for deciphering the complex moves of the market. Can is the operative word. The Smart Money Saw it First. 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). Remember, were looking for activity that Smart Money traders are making. It is written in easy to understand language and filled with real life examples and spot-on analogies. Each day, Jon Najarian gives three UOA trade ideas live in [emailprotected] with Jon Najarian. 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. Watch and see how we follow the Smart Money with Unusual Option Activity. Howd that play out? 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. Thats an exchange we are happy to make. You know it when you see it. 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. 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. Follow the Smart Money Review: Unusual Options Activity Around 4,000 contracts of the January $43 calls were traded for about $1.10. Please try again. Besides the fact that the volume is high, the fact that bearish sentiment dramatically exceeds open interest tells us without a doubt that the trade is an opening order. 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). Our Free Book Helps Everyday Investors Follow the Smart Money! | Here's Knowing what weve described about unusual options activity, the profile of the perfect trade is likely obvious. By clicking below, you also agree to our Terms of Use and acknowledge our Privacy Policy. By April 14th, Musk stunned everyone by making an offer to buy the remaining shares of TWTR at $54.20 apiece. The market can (and will) do what the market wants. Reviewed in the United States on May 20, 2020. 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. Using Discipline to Trade the Stock Market - YouTube 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. Someone is making a big bet (1,000,000 share equivalent) in the direction of the price. Kick back with Jon & Pete LIVE, every Monday, Tuesday, Wednesday & Thursday as they talk and debate Market Ticks, Unusual Option Activity Picks, and Sports Blitz. Eventually, Pete became the President of Mercury Trading. Starting in 2021, our Heat Seeker algorithm spotted consistent activity in Tilray, one of the leading marijuana stocks. Jon & Pete Najarian are the unusual options activity pioneers. . Instead, understand the process by which trade ideas are chosen from the potential unusual options activity. This is the date by which an option either has to be exercised or the contract is void. BTW - I dont think there is an easy way to learn the Greeks. On the opposite side, it doesnt mean that a large trade executed on the offer with a close expiration date is unusual. For example, around some major news events, the implied volatility measure may prove less important. Using your mobile phone camera - scan the code below and download the Kindle app. Were giving up the possibility of home run trades in exchange for what we hope are more doubles and triples. John and Pete Najarian's Follow The Smart Money??? - reddit Try again. 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. In the options market, thats a trade that stands out so much you cant help but notice it; a tradeor, more frequently, series of tradeswith essentially no explanation other than someone must know the stock price is going in one direction or the other. Pete Najarian noticed a big volume in the December $20 calls in JetBlue Airways Corporation JBLU . Meaning those cheap calls that were previously trading far out-of-the-money had appreciated by hundreds of dollars in a matter of days. 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. Najarian Brothers Highlight Unusual Options Activity In L Brands , . At Market Rebellion, our unusual options activity trades are all centered around the idea of controlling risk, with a firm understanding in the fundamentals and mechanics of options trading. Jon Najarian Leaves CNBC to Chart New Rebellious Horizons. 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. You can watch the latest episode of the [emailprotected] below. 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. 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. Najarian options activity on CNBC halftime report don't reflect strategy presented in this book. Lets take a look at a few recent examples. Full content visible, double tap to read brief content. It's mostly biographies of these crooks. To trade unusual options activity, you have to get to the heart of what exactly makes a trade unusual. 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 Najarian brothers track the options market closely -- in this clip they reveal the unusual buying activity they're seeing. Every time he tells me about Pete and John's unusual call option activity it ALWAYS ranks. As an options trader, you have many different options for finding trade ideas. He loves the trade and he decided to follow it. Starting in November 2020, we noticed that Gluu Mobile Inc. (GLUU) was starting to heat up. He jumped in the trade and he is planning to hold the position for a month. If you do not want us and our partners to use cookies and personal data for these additional purposes, click 'Reject all'. This doesnt mean that all of these trades are actionable. 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. The market may be expecting a large move. 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). Najarian Brothers Highlight Unusual Option Activity In Verizon - Yahoo! Volume alone is not enough to identify potential insider moves. That announcement caused shares of Activision to soar by 26%. This book is totally worthless even if you only pay$9.95 for shipping and handling. Thats where experience and added research come into play. Reviewed in the United States on May 4, 2021. 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. Benzinga does not provide investment advice. 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. Their goal is to be inconspicuous. Around 2,500 contracts of the April $18 calls were traded in Nuance Communications Inc. NUAN for $1.15. The Najarian brothers recently started airing ads touting their new book and DVD called 'Follow the Smart Money'. 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. Unusual options activity is an order flow strategy. It might. 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. Brief content visible, double tap to read full content. It doesnt mean that the stock price will move. There is fundamental research, technical analysis, and order flow analysis. In order to get the most from UOA order flow, you have to understand that this is a percentage game. 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! For example, we like to see high options volume relative to open interest. I highly recommend it. If that order appears paired with a stock transaction, for instance, it could be a hedging transaction. Follow The Smart Money - Unusual Option Activity - #1 Way We Choose Our Searching for a better way to trade options? Unusual Options Activity Trading Guide | Market Rebellion There are other factors that could make it less unusual. 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. 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. Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. : Want unusual option activity trade ideas delivered to you every day? 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. Reviewed in the United States on March 12, 2021. If the open interest is 100, that means thatacross the whole marketthere are 100 long contracts and 100 short contracts. For example, around some major news events, the implied volatility measure may prove less important. Reviewed in the United States on October 19, 2020. The market may be expecting a large move. While there is a formula, it is not exactly straightforward. BTW - I dont think there is an easy way to learn the Greeks. But, unusual options activity isnt a magic bullet. Instead, understand the process by which trade ideas are chosen from the potential unusual options activity. 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. And were already hitting the ground running! FOLLOW THE SMART MONEY Unusual Option Activity JON & PETE NAJARIAN BOOK NEW. The trade breaks even at $49.80 or 1.78% above the closing price on Thursday. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. Heres a glimpse at Market Rebellions unique approach to trading the UOA strategy: Our Unusual Options Activity Philosophy Explained. As small and nimble traders, we focus on capitalizing while these big funds are still amassing their market-moving position. All Rights Reserved. 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. 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. Theres fundamental research, technical analysis, and order flow analysis. However, options markets are still relatively small. Theyll be talking options trading as they break down the latest market action in the midst of a jam-packed week of earnings. As discussed above, the term we use for Smart Money could be company insiders trading on inside information or institutional firms building large positions. Unusual options activity is not a full-proof method for trading stocks. 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. 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 ). 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. The Najarian brothers bring a unique perspective to trading that is built upon excellence in sports and education. In effect, it is a gauge of interest in the contract at any point in time. 4 people found this helpful Helpful Report abuse S1Guy Better than expected Reviewed in the United States on May 20, 2020 The very next day it was announced that Zendesk was getting bought out for $77.50 per share making the $70-strike call options bought the day prior conspicuously well timed and well targeted. 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. 380K views, 391 likes, 11 loves, 77 comments, 48 shares, Facebook Watch Videos from Najarian Brothers: Here's How our New Book Helps People "Follow the Smart Money" on Wall Street using Unusual. If there is about to be a phase 3 drug trial announcement, it wouldnt be unusual to see implied volatility very high. It has weathered the test of time and continues to perform as a reliable indication of where the Smart Money is investing. Submit your email and well send you an article that takes you deep inside the minds of our UOA analysts. Every day, Market Rebellions Heat Seeker algorithm flags dozens of potential trades. I absolutely loved this book. Were giving up the possibility of home run trades in exchange for what we hope are more doubles and triples. 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.
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