How to Trade Unusual Options Activity
Get Valuable information
Most investors have realized the power of looking at daily Unusual Options Activity. The thinking is that large Hedge Funds, the Smart Money, have an information advantage versus the average investor.
So, obviously, it would be great to see the stocks they’re trading at the moment they’re trading them. It would be even better if we could get more detailed information about their idea.
Tracking large options trades, or Unusual Options Activity, can give you a lot of that information. Besides direction, it also offers timing.
The Problems with Unusual Options Activity Screeners
Whether it's Unusual Options Activity Alerts or Screeners, the market is inundated with these services. And investors are getting frustrated.
The issue is simple. There are too many trades to follow. On any given day there are over 150 trades that qualify. And hundreds more if you include certain criteria like "Inter-market Sweeps." Are you going to trade every single one?
Of course not. So, how do you choose the right one to trade?
This is only the first problem facing most traders looking at Unusual Options Activity.
The second problem is that investors don't know how to analyze the trades.
From Trade Idea to Unusual Options Activity
Unusual Options Activity starts with a Trade Idea that often starts inside a Hedge Fund, where the Top 1% manage Billions of dollars. Using analysis, resources, money, and their network, the Hedge Funds are the source of the idea.
Once they decided to invest in the idea, the Hedge Fund takes the trade to a Top Investment Bank. After a trade is agreed upon by both parties, the trade is sent to an exchange where it ultimately pops up on the screeners.
You see the trade at the end of this process.
Finding the Unusual Options Activity is the Easy Part
Let's make it perfectly clear right now. Not every Unusual Options Activity trade qualifies as a trade to follow. You must know what you're looking for and more importantly, you must know how to analyze it.
So, what makes this strategy successful or not is:
- How well can you read the data, and;
- How well can you make sense of what happened here?
Now I'm not only an expert in options that can understand and dissect the nuances of these trades. I also worked at a top Investment Bank trading against the Top 1% of investors in the world. This includes famed Hedge Fund Managers like Steve Cohen, George Soros, and Carl Icahn just to name a few.
But that’s not all.
My Unique Experience Helps
My Wall Street experience goes much further than working at the Top Investment Banks.
In 2008, I switched sides and took a job as the Head Trader at one of the top hedge funds in the world. I instantly became the "source" of these trades. This role I played inside a prestigious Hedge Fund gives me more experience than most people. And now I’m taking that experience to help you understand the missing pieces of this puzzle.
Remember, all you see is the end result... the trades that appear on a screener.
I'm trying to explain to you all the nuances that occur in the rest of the process to shed better light on the information provided by the Unusual Options Activity.
The Most Valuable Information
For example, one of the most coveted pieces of information you want when you look at Unusual Options Activity is the Hedge Funds Target Stock Price. Given the trade, where does the Hedge Fund Manager think the stock is going?
You won’t find that online or in any Options book.
I created the Best Options Trading Course on the market, 3 Steps to Profit, to show you how to analyze these trades and how to get the Target Stock Price on your own.
Inside you'll receive the Ultimate Guide to Unusual Options Activity for you to understand how to narrow down the field of trades to a select few. And how to extract the most information out of these trades, including the Hedge Fund’s Target Stock Price.
Trade Idea Results
Then if you’re interested. I’ll show you the results that are making the OptionsGeek community incredible profits. Some of the Trade Ideas I offer have reached 100% to 300% gains. Members are even seeing winners of 600%, 1,500%, and 3,000% returns. Just take a look for yourself...
That’s the power of Unusual Options Activity!
Join me inside the Best Options Trading Course, 3 Steps to Profit.
You will learn more than you could ever think was possible.