There are other factors that could make it less unusual. Pete Najarian spoke about high options activity in Taiwan Semiconductor Mfg. Customer Reviews, including Product Star Ratings help customers to learn more about the product and decide whether it is the right product for them.Learn more how customers reviews work on Amazon. Theres nothing wrong with that; its just not unusual options activity. Insiders offer one easy explanation for the source of unusual options activity. 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, trading unusual options activity based on one criterion (e.g., volume of the trade is greater than open interest) is too simple. At Market Rebellion, our unusual options activity trades are all centered around the idea of controlling risk, with a firm understanding of the fundamentals and mechanics of options trading. 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. 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. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. Please don't even THINK ABOUT BUYING! Reviewed in the United States on October 19, 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, you should also realize that this is still a probability-based analysis. If you would like to customise your choices, click 'Manage privacy settings'. More than 10,000 contracts of the October $15 calls were traded for 20 cents in the first half of the session. Is it going to require an update to the VIX calculation? Supporting posts: 2019 Benzinga.com. Market Rebellion specializes in unusual options activity trade ideas. Lofty Expectations Meet Lofty Valuations at Teslas 2023 Investor Day. 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. And when news leaks, there are some greedy insiders who try to take advantage. 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). 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! Starting in November 2020, we started flagging buying in GLUU, with activity in March and June. A company may release great news and have the stock price barely budge or even go down. Here's some things I think you should know about the Najarian brothers: Before we get into the backstory of these two I just want to make a comment about their marketing style. What are the filters that the options activity goes through before it is presented as a trade idea? Need a little brightness in your day? It looks at where options (calls or puts) are being bought, primarily compared against historic or normal levels. If that order appears paired with a stock transaction, for instance, it could be a hedging transaction. 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. 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. 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. That announcement caused shares of Activision to soar by 26%. This article was last updated on 11/30/2022. It is simply a measure of how many times a given security exchanged hands. If you are interested in unusual options activity because of exponential gains from front-running potential news, thats normal. When we present a trade idea, we dont just regurgitate the trade that triggered the alert. Brief content visible, double tap to read full content. The ask represents the price at which someone is willing to openly sell the option. She is a popular actress, and was featured in the show Wall Street . 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. Full content visible, double tap to read brief content. The market may be expecting a large move. You can check out the latest episode of the [emailprotected] below. 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. Silvergate Capital Just Got Cut in Half. The market can (and will) do what the market wants. 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. Specific securities or Digital Assets are mentioned for educational and informational purposes only. Your recently viewed items and featured recommendations. In Follow the Smart Money, Jon and Pete will teach youstep-by-stephow they trade unusual option activity every day. You may find other books as helpful and maybe more so but this is a good introduction. Youll learn nothing from me. A company may release great news and have the stock price barely budge or even go down. 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 where experience and added research come into play. There was an error retrieving your Wish Lists. 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. Tune in and get fresh stock market insights from Jon and watch him unveil the latest in Unusual Options Activity. All of this information is publicly available as reported when trades happen. Whoever this was, they sure did make a lucky guess. : When Wall Street moves into (or out of) a company, sector, or theme, the smaller options market is often the first place its noticeable. Many popular ones typically look at the ratio of volume to open interest in a particular option. Around 2,500 contracts of the April $18 calls were traded in Nuance Communications Inc. NUAN for $1.15. Want a daily dose of unusual options activityabsolutely free? Co. Ltd. (NYSE: TSM). Jon and Pete Najarian pioneered Unusual Options Activity trading strategies to follow the smart money. Jon and the entire team are very excited about this opportunity to open new doors and better serve traders like you. He thinks they are honest and it's his fault, and no doubt he bears personal responsibility for making trades. 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. And were already hitting the ground running! The orange dots indicate what we call unusual unusual options activity. , , , , , , . . Unusual options activity is an order flow strategy. Theres fundamental research, technical analysis, and order flow analysis. 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. Supporting posts: Can is the operative word. Whether we're talking about thousand-dollar donations to food banks, tables-full of video game. 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. It is a how to guide that shares . 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. So, how exactly do you pinpoint unusual options activity amid such volume and noise? , Reviewed in the United States on October 26, 2020. 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. We pioneered a formula for identifying unusual options activity. 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. In other words, the trade clearly doesnt make sense. And inside each of these categories, there are dozens of different trading strategies you can choose from. Lofty Expectations Meet Lofty Valuations at Teslas 2023 Investor Day. As small and nimble traders, we focus on capitalizing while these big funds are still amassing their market-moving position. On the opposite side, it doesnt mean that a large trade executed on the offer with a close expiration date is unusual. It was worth the price. Just like a polar bear walking on a beach. Get a custom-designed trading program tailored to your individual needs, skill level, and schedule. For example, we like to see high volume relative to open interest. Youll learn nothing from me. All Rights Reserved. It takes analysis and work, and then proper position sizing and management. Think youre ready to get started trading unusual options activity? Its really in how these multiple factors come together that qualifies an options trade as truly unusual. 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. As discussed above, the term we use for Smart Money could be company insiders trading on inside information or institutional firms building large positions. Three Keys to Identifying UOA. Every day, Market Rebellions Heat Seeker algorithm flags dozens of potential trades. They picked the $15.50 strike, although the price has already jumped above that level. But when done properly, it can be a powerful tool for your portfolio. Instead, understand the process by which trade ideas are chosen from the potential unusual options activity. Were giving up the possibility of home run trades in exchange for what we hope are more doubles and triples. The dynamic duo are both chomping at the bit to join forces. Dont miss Making Money With Charles Payne, today on Fox Business! One or two results are not indicative of the power of this strategy over the long term. Starting in March 2022, we began identifying unusual call buying in social media giant Twitter (TWTR). Some sites have compiled free screeners that use a one-factor model to present unusual options activity. Ultimately, the stock kept surging from the $9 price point to above $60, before its price eventually fell back to earth. Data rates may apply. 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). 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. The orange dots indicate what we call unusual unusual options activity. By April 14th, Musk stunned everyone by making an offer to buy the remaining shares of TWTR at $54.20 apiece.