Its more challenging than just viewing where big money flows are going. Pete Najarian has also bought these calls and he is going to hold them through the expiration. Jon and the entire team are very excited about this opportunity to open new doors and better serve traders like you. I absolutely loved this book. The beauty of this strategy is that it doesnt really matter to us who it is in particular. 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. , Item Weight It also analyzed reviews to verify trustworthiness. Jon & Pete Najarian are the unusual options activity pioneers. When the stock was trading at $25, options traders began buying the December $30 calls. And thats an exchange we are happy to make. With the stock trading below $9, there was buying of at-the-money calls. And these are exactly the times (ahead of major market events) that they may be active. 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). By April 14th, Musk stunned everyone by making an offer to buy the remaining shares of TWTR at $54.20 apiece. 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. Looking at it this way makes the perfect unusual options activity trade profile a little more obvious. More than 10,000 contracts of the October $15 calls were traded for 20 cents in the first half of the session. When done properly and viewed in the context of a complete portfolio, however, it can be a powerful tool for your portfolio. Najarian followed the trade and he is going to hold the position until the December expiration. 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. Surprisingly informative. Howd that play out? He also covers . Everything youve ever wanted to know about Unusual Options Activityin one convenient insiders guide. 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. Najarian Brothers See Unusual Activity In FXI, XLI And More Their goal is to be inconspicuous. What would you like me to ask @jonnajarian on Wednesday? It has weathered the test of time and continues to perform as a reliable indication of where the Smart Money is investing. Jon Najarian has also noticed a purchase of the November $22 calls in Builders FirstSource, Inc. (NASDAQ: BLDR). The Smart Money Saw it First. If that order appears paired with a stock transaction, for instance, it could be a hedging transaction. Were giving up the possibility of home run trades in exchange for what we hope are more doubles and triples. 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. And these are exactly the times that they may be active. Target Option Traders Turn Bearish Following Big Holiday Shopping Weekend, Do Not Sell My Personal Data/Privacy Policy. Follow the Smart Money Review: Unusual Options Activity 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. The trade breaks even at $49.80 or 1.78% above the closing price on Thursday. Open interest: Open interest is the amount of contracts outstanding in the market. Najarian Brothers - Facebook 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. All of this information is publicly available as reported when trades happen. Follow the Smart Money 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. In simple terms, you are looking for a trade that makes you say hmmm thats weird. There was an error retrieving your Wish Lists. Follow the Smart Money is a page turner and will open your eyes towards better strategic trading. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. But that was nothing compared to these call options, which gained 11-times their value immediately following the event. Investors are fully responsible for any investment decisions they make. Supporting posts: Free shipping. All Rights Reserved. Each day, Jon Najarian gives three UOA trade ideas live in [emailprotected] with Jon Najarian. Najarian Brothers Highlight Unusual Options Activity In - Benzinga Lofty Expectations Meet Lofty Valuations at Teslas 2023 Investor Day. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. That means someone is making an unusually big bet (1,000,000 share equivalent) in the direction of the price. Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. 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! Benzinga does not provide investment advice. The Najarian brothers track the options market closely -- in this clip they reveal the unusual buying activity they're seeing. 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. Unusual options activity is an order flow strategy. Around 2,500 contracts of the April $18 calls were traded in Nuance Communications Inc. NUAN for $1.15. However, most unusual options activity alerts dont neatly check all of the boxes on the above list. Their goal is to be inconspicuous. The ask represents the price at which someone is willing to openly sell the option. 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. It just means that they passed the first level test. It's mostly biographies of these crooks. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. Investors are fully responsible for any investment decisions they make. It looks at where options (calls or puts) are being bought, primarily compared against historic or normal levels. Instead, understand the process by which trade ideas are chosen from the potential unusual options activity. 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. The market may be expecting a large move. The stock rose, and more and more unusual options activity appeared. Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. This is not a waste of time. It doesnt mean that the stock price will move. The beauty of this strategy is that it doesnt really matter to us who the trader is or what the potential catalyst could be. Instead, understand the process by which trade ideas are chosen from the potential unusual options activity. We, Yahoo, are part of the Yahoo family of brands. Data rates may apply. Finally, well give you a sneak peek at our unusual options activity trade alerts and connect you with additional resources to learn more. These positions ultimately move stock prices in big ways, but the cause and effect may not be immediate. Follow The Smart Money - Unusual Option Activity - #1 Way We Choose Our Need a little brightness in your day? She is a popular actress, and was featured in the show Wall Street . Najarian Brothers See Unusual Activity In Abercrombie & Fitch, Under At the time, Twitters share price had been cut in half from its $80 all-time high reached in February of 2021. Thats where experience and added research come into play. Those do not exist. Rivian: "They Can't Get It Right" - YouTube The orange dots indicate what we call unusual unusual options activity. (We discuss why this is in further detail in the Why do we trade unusual options activity section below.). 2023 Market Rebellion, LLC. These positions ultimately move stock prices in big ways, but the cause and effect may not be immediate. 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. Pete Najarian spoke about Dropbox Inc (NASDAQ: DBX). Become an Unusual Options Activity trading master with 10+ new trade ideas and updates per week. Heres an example from back in February 2021. 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. Najarian explained that this is a bearish bet because SQQQ is the short ETF and he thinks the trade might be a protection. Market Rebellion has unusual options activity trading services designed for a wide range of experience levels. Najarian Brothers See Unusual Options Activity In Melco - Benzinga Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. Najarian Brothers Highlight Unusual Options Activity In Activision Volume alone is not enough to identify potential insider moves. Thats an exchange we are happy to make. Reviewed in the United States on May 20, 2020. This doesnt mean that all of these trades are actionable. All rights reserved. Like stocks, options have two prices: a bid and an ask. Theres nothing wrong with that; its just not unusual options activity. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. In your trading, you are going to have to work to identify how much of this criteria must be met to make a trade unusual to you. 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. Click here to explore all of our amazing FREE shows on Market Rebellion TV. 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). A company may release great news and have the stock price barely budge or even go down. There are other factors that could make it less unusual. Please try again. Now, imagine that those 10,000 put options were bought far out-of-the-money. 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. 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. Get a custom-designed trading program tailored to your individual needs, skill level, and schedule. 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. By looking at options activity, we can see the footprints of how theyre moving before the rest of the market does. Is it going to require an update to the VIX calculation? Is there a methodology to controlling risk in the trade? To trade unusual options activity, you have to get to the heart of what exactly makes a trade unusual. On the opposite side, it doesnt mean that a large trade executed on the offer with a close expiration date is unusual. 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. The Smart Money Saw it First. However, the one strategy that has stood the test of time, in our experience, is using unusual options activity to find trade ideas. 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. 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. Please don't even THINK ABOUT BUYING! Some sites have compiled free screeners that use a one-factor model to present unusual options activity. See Also: Todd Gordon's Starbucks Options Trade. I'm so pumped!!!! Get a daily dose of unusual options activity. 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. Never miss our contentlet us deliver it right to your inbox. : It is a how to guide that shares . Whether we're talking about thousand-dollar donations to food banks, tables-full of video game. 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. Lets take a look at a few recent examples. If there is about to be a phase 3 drug trial announcement, it wouldnt be unusual to see implied volatility very high. 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. It is simply a measure of how many times a given security exchanged hands. Heres an example from February 2021. 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.