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. 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. : 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. Thats where experience and added research come into play. Market Rebellion specializes in unusual options activity trade ideas. 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. If the open interest is 1, that means that there is one long contract AND one short contract. Traders paid around 20 cents for them. , Item Weight Data rates may apply. FOLLOW THE SMART MONEY Unusual Option Activity JON & PETE NAJARIAN BOOK NEW. Need a little brightness in your day? 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. Pete Najarian spoke about high options activity in Taiwan Semiconductor Mfg. Najarian Brothers See Unusual Options Activity In Bristol-Myers, AMD And More . The breakeven for the trade is at. Watch each day as Jon Najarian gives you three UOA trade ideas live in [emailprotected] with Jon Najarian. But the one method for finding trade ideas that has stood the test of time, in our experience, is unusual options activity. Traders were buying the November 91 calls in the name. Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. Youre probably familiar with this first example from the first half of 2022. This book is totally worthless even if you only pay$9.95 for shipping and handling. If you are ready to get started trading unusual options activity, What Information to Look For in Trade Alerts, Dont Make These Rookie Mistakes with UOA, Revealed: The Smart Money Behind Techs Big Run. In order to get the most from UOA order flow, you have to understand that this is a percentage game. It takes analysis and work, and then proper position sizing and management. First, well define what makes options activity unusual. 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. Reviewed in the United States on June 6, 2020, Reviewed in the United States on April 1, 2021. Want unusual option activity trade ideas delivered to you every day? 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. Price paid: The price paid is how much the option buyer paid for the option. 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. Eventually, Pete became the President of Mercury Trading. True, that is a necessary condition of unusual options activity, but it is not sufficient to trade off of the order flow. Thats where experience and added research come into play. Traders were buying the November $49 calls in the name. Najarian followed the trade and he is going to hold the position until the December expiration. In even simpler terms, youre looking for a polar bear walking on a beach. 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. While there is a formula, it is not exactly straightforward. Open interest: Open interest is the amount of contracts outstanding in the market. 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). : 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 Insiders offer one easy explanation for the source of unusual options activity. This article was last updated on 11/30/2022. From there, we filter even further with a mixture of the criteria above. Reviewed in the United States on October 26, 2020. Pete Najarian spoke about Dropbox Inc (NASDAQ: DBX). Get a custom-designed trading program tailored to your individual needs, skill level, and schedule. 'Fast Money Halftime Report' Traders Weigh In On Lowe's, Micron And More, 'Fast Money Halftime Report' Picks For October 9. Follow the Smart Money is a page turner and will open your eyes towards better strategic trading. 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. Finally, well give you a sneak peek at our unusual options activity trade alerts and connect you with additional resources to learn more. 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. 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. 3 talking about this. Tesla investors were hoping for announcements about the highly anticipated Model 2. 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. Thats an exchange we are happy to make. 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. This activity is particularly ripe for trade ideas. Investors are fully responsible for any investment decisions they make. Those do not exist. Jon Najarian noticed that options traders were buying the December $32 calls in Luckin Coffee Inc - ADR (NASDAQ: LK ). And when news leaks, there are some greedy insiders who try to take advantage. Pete Najarian loves the risk-reward for the trade and he decided to jump in the trade. These can be a good place to start, but are often cluttered with a lot of noise, like hedges and multi-legged option strategies, that can lead you astray. Pete Najarian has also bought these calls and he is going to hold them through the expiration. Every day, Market Rebellions Heat Seeker algorithm flags dozens of potential trades. Your recently viewed items and featured recommendations. Looking at it this way makes the perfect unusual options activity trade profile a little more obvious. Jon Najarian Leaves CNBC to Chart New Rebellious Horizons. It's mostly biographies of these crooks. Dont be stupid though. 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. Jon Najarian has reached a mutual agreement with CNBC to discontinue his exclusive contributor contract here's where you can watch him now. The stock rose, and more and more unusual options activity appeared. What are the filters that the options activity goes through before it is presented as a trade idea? 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. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs. One or two results are not indicative of the power of this strategy over the long term. 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. BTW - I dont think there is an easy way to learn the Greeks. See Terms of Use for details. 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. , . 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. On the opposite side, it doesnt mean that a large trade executed on the offer with a close expiration date is unusual. If that order appears paired with a stock transaction, for instance, it could be a hedging transaction. Surprisingly informative. Brief content visible, double tap to read full content. 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 Instead, understand the process by which trade ideas are chosen from the potential unusual options activity. Jon Najarian saw unusual activity in Aimmune Therapeutics Inc (NASDAQ: AIMT ). We think about how the trade will perform as the price of the stock moves and time decay sets in. Tesla investors were hoping for announcements about the highly anticipated Model 2. All rights reserved. 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. Can is the operative word. It's mostly biographies of these crooks. 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. The trade breaks even at $49.80 or 1.78% above the closing price on Thursday. By April 14th, Musk stunned everyone by making an offer to buy the remaining shares of TWTR at $54.20 apiece. I highly recommend it. Three Keys to Identifying UOA. Follow the Smart Money is a page turner and will open your eyes towards better strategic trading. Weitere Informationen ber die Verwendung Ihrer personenbezogenen Daten finden Sie in unserer Datenschutzerklrung und unserer Cookie-Richtlinie. 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. 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. 2023 Benzinga.com. Ultimately, the stock kept surging from the $9 price point to above $60, before its price ultimately fell back lower. Reviewed in the United States on June 6, 2020, Reviewed in the United States on April 1, 2021. It was worth the price. That sense of urgency says, we think this is going to happen fast.. If you do not want us and our partners to use cookies and personal data for these additional purposes, click 'Reject all'. Everyone is looking for an edge in the market. 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. There was an error retrieving your Wish Lists. Lets add one more ingredient: what if those 10,000 out-of-the-money put options were expiring next week? This doesnt mean that all of these trades are actionable. Lets say that we see 10,000 calls are purchased versus open interest of 250 contracts. Reviewed in the United States on May 20, 2020. This is not a waste of time. Howd that play out? It also analyzed reviews to verify trustworthiness. To trade unusual options activity, you have to get to the heart of what exactly makes a trade unusual. Not sure where to start? Unusual options activity is not a full-proof method for trading stocks. Whats that mean in practice? Whoever this was, they sure did make a lucky guess. 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. Is there a methodology to controlling risk in the trade? Remember, Smart Money traders could be company insiders trading on inside information or institutional traders building large positions. The Smart Money Saw it First. Now, imagine that those 10,000 put options were bought far out-of-the-money. When we present a trade idea, we dont just regurgitate the trade that triggered the alert. When the stock was trading at $25, options traders began buying the December $30 calls. Those do not exist. The market is too big and too humbling for us to expect that. Revealed: The Smart Money Behind Techs Big Run. Surprisingly informative. Surprisingly informative. On the opposite side, it doesnt mean that a large trade executed on the offer with a close expiration date is unusual. . Unusual options activity is how we Follow the Smart Money in our trades. In order to get the most from UOA order flow, you have to commit to more than a few trades. It has weathered the test of time and continues to perform as a reliable indication of where the Smart Money is investing. The market can (and will) do what the market wants. Need a little brightness in your day? 2023 Market Rebellion, LLC. He followed the trade and he is going to hold . If you would like to customise your choices, click 'Manage privacy settings'. In Follow the Smart Money, Jon and Pete Najarian will teach you how they trade unusual option activity every daystep-by-step from identifying the trade, to confirming if it is unusual, to choosing the right options strategy. Can is the operative word. It looks at where options (calls or puts) are being bought, primarily compared against historic or normal levels. 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. Najarian jumped in and. Wenn Sie Ihre Auswahl anpassen mchten, klicken Sie auf Datenschutzeinstellungen verwalten. One or two results are not indicative of the power of this strategy over the long term. In the meantime, be sure to follow Jons regularly scheduled, Rebellion-exclusive shows inside the Rebel Hub. The expiration is covering the J.P. Morgan Healthcare Conference. After viewing product detail pages, look here to find an easy way to navigate back to pages you are interested in. For example, around some major news events, the implied volatility measure may prove less important. Amazon has encountered an error. 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. 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. 2023 Benzinga.com. Unable to add item to List. Full content visible, double tap to read brief content. 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. 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. Follow The Smart Money - Unusual Option Activity - #1 Way We Choose Our Trades, Publisher Today, shares were cut in half. Learn more how customers reviews work on Amazon. He jumped in the trade and he is planning to hold the position for a month. Instead, understand the process by which trade ideas are chosen from the potential unusual options activity. When Wall Street moves into (or out of) a stock, the smaller options market is often the first place its noticeable. Traders were buying the November $49 calls in the name. The beauty of this strategy is that it doesnt really matter to us who it is in particular. On June 23rd, 2022, a trader picked up 2,300 far out-of-the-money $70-strike call options in Zendesk (ZEN) expiring in less than a month. It is a how to guide that shares . Ready to trade? If the open interest is 100, that means thatacross the whole marketthere are 100 long contracts and 100 short contracts. Dont miss Making Money With Charles Payne, today on Fox Business! Sanofi SA SNY was also active. Data rates may apply. There are other factors that could make it less unusual. See Also: Target Option Traders Turn Bearish Following Big Holiday Shopping Weekend. The Najarian brothers bring a unique perspective to trading that is built upon excellence in sports and education. Insiders Guide: How to Trade Unusual Options Activity. Sorry, there was a problem loading this page. 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. That means someone is making an unusually big bet (1,000,000 share equivalent) in the direction of the price. https://t.co/vNCg4TDtQh. 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). However, unusual options activity isnt a magic bullet. Click here and well match you with a personalized recommendation. One of the best investment books out there, Reviewed in the United States on January 15, 2020. This can be any combination of opening trades and closing trades. Benzinga does not provide investment advice. Jon Najarian has also noticed a purchase of the November $22 calls in Builders FirstSource, Inc. (NASDAQ: BLDR). Benzinga does not provide investment advice. It just means that they passed the first test. 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. Whether that something is an upcoming acquisition or news on a successful (or unsuccessful) drug trial, it doesnt matter. This book is totally worthless even if you only pay$9.95 for shipping and handling. Some sites have compiled free screeners that use a one-factor model to present unusual options activity. , . If you are interested in unusual options activity because of exponential gains from front-running potential news, thats normal. Get real-time UOA trading insights and LIVE-market analysis throughout each trading day as part of our community of elite traders. 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. I'm so pumped!!!! Why would someone seemingly throw away a large amount of money? Lofty Expectations Meet Lofty Valuations at Teslas 2023 Investor Day. The Najarian brothers bring a unique perspective to trading that is built upon excellence in sports and education. It just means that they passed the first level test. !The legend is coming to Making Money. But this isnt the only time that a massive, out-of-the-blue option trade seemed to foreshadow an acquisition. Pete Najarian spoke about high options activity in Taiwan Semiconductor Mfg. 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. Investors are fully responsible for any investment decisions they make. The market may be expecting a large move. Lets keep up the momentum and start this next chapter with a BANG! It's mostly biographies of these crooks. 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. 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. All rights reserved. Everyone is looking for an edge in the market. authenticate users, apply security measures, and prevent spam and abuse, and, display personalised ads and content based on interest profiles, measure the effectiveness of personalised ads and content, and, develop and improve our products and services. Inside each of these categories, there are dozens of different strategiesmost of which go in and out of favor. 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. In general, its traders or investors with a lot of resources and critically information that we dont have as individuals. 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! If you are interested in unusual options activity because of exponential gains from front-running potential news, thats normal. It was worth the price. Jon and Pete Najarian pioneered Unusual Options Activity trading strategies to follow the smart money. Then, on April 4th, renowned Tesla (TSLA) CEO Elon Musk disclosed that he had acquired a 9.2% stake in the company. 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. Instead, they got a model of a tarp,, 8 Times Retail Traders Did Something Amazing. If you are someone who doesnt learn easily , doesnt commit, or are lazy, dont kid yourself, dont buy. Think youre ready to get started trading unusual options activity? It takes analysis and work, and then proper position sizing and management. Can't wait one of best on the street and a nice guy to boot. 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. Top subscription boxes right to your door, 1996-2023, Amazon.com, Inc. or its affiliates, Learn more how customers reviews work on Amazon. Reviewed in the United States on October 19, 2020. The Smart Money Saw it First. Were giving up the possibility of home run trades in exchange for what we hope are more doubles and triples. Try Unusual Option Activity Essential. Najarian explained that this is a bearish bet because SQQQ is the short ETF and he thinks the trade might be a protection. Whether we're talking about thousand-dollar donations to food banks, tables-full of video game. It might. The Najarian brothers bring a unique perspective to trading that is built upon excellence in sports and education. 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). You can watch the latest episode of the [emailprotected] below. And that is information that we act on. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. Pete and Jon are the sons of famous surgeon John Najarian . , . 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. Starting in November 2020, we started flagging buying in GLUU, with activity in March and June. Access daily UOA with trade ideas filtered by our pro analysts former market makers Ryan Mastro & Wayne Razzi. But that was nothing compared to these call options, which gained 11-times their value immediately following the event. Is it going to require an update to the VIX calculation? Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. Learn more. FOLLOW YOUR MONEY INTO JOHN AND PETES' POCKETS!- A TRUE TITLE! , Reviewed in the United States on October 26, 2020. When done properly and viewed in the context of a complete portfolio, however, it can be a powerful tool for your portfolio. As discussed above, the term we use for Smart Money could be company insiders trading on inside information or institutional firms building large positions. Full 30-day money back guarantee on annual subscriptions. However, a more common unusual options activity trigger is not so obvious. It looks at where options (calls or puts) are being bought, primarily compared against historic or normal levels. A company may release great news and have the stock price barely budge or even go down. Starting in 2021, our Heat Seeker algorithm spotted consistent activity in Tilray (TLRY), one of the leading marijuana stocks. All rights reserved. Najarian options activity on CNBC halftime report don't reflect strategy presented in this book. 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 insiders guide will show you how you can identify, screen, and trade unusual options activity just like Jon Najarian,Pete Najarian, and our team of analysts at Market Rebellion. Lets take a look at a few recent examples. You're listening to a sample of the Audible audio edition. Volume alone is not enough to identify potential insider moves. And thats an exchange we are happy to make. In general, it is traders or investors with a lot of resources andcriticallyinformation that we dont have as individuals. Jon Najarian, co-founder of Market Rebellion, explains the unintended consequences of 0 days to expiration (0DTE) options. This article was last updated on 12/14/2022. When Wall Street moves into (or out of) a company, sector, or theme, the smaller options market is often the first place its noticeable. And were already hitting the ground running! 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. Whats that mean in practice? Whether that something is an upcoming acquisition or news on a successful (or unsuccessful) drug trial, it doesnt matter. As an options trader, you have many different options for finding trade ideas. The orange dots indicate what we call unusual unusual options activity. Remember, were looking for activity that Smart Money traders are making. He also noticed that traders are buying the November 35.50 calls in Pfizer Inc. PFE. Learn the #1 way that Jon and Pete Najarian choose their trades all laid out in an easy-to-understand format. SEIZE CONTROL OF YOUR FINANCIAL DESTINY - Get a . This is a perfect example of how powerful unusual options activity can be. Please don't even THINK ABOUT BUYING! We think about how the trade will perform as the price of the stock moves and time decay sets in. Read instantly on your browser with Kindle for Web. It doesnt mean that the price of the stock will move. The orange dots indicate what we call unusual unusual options activity. Jon and the entire team are very excited about this opportunity to open new doors and better serve traders like you. 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.