Every day, Market Rebellions Heat Seeker algorithm flags dozens of potential trades. Jon Najarian Leaves CNBC to Chart New Rebellious Horizons Options are leveraged instruments that give equity traders the right (but not the obligation) to buy or sell a stock at a specific price on a specific date. See Terms of Use for details. The Najarian brothers track the options market closely -- in this clip they reveal the unusual buying activity they're seeing. , Item Weight From there, we filter even further with a mixture of the criteria above. It is simply a measure of how many times a given security exchanged hands. It has weathered the test of time and continues to perform as a reliable indication of where the Smart Money is investing. 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. Insiders offer one easy explanation for the source of unusual options activity. Your recently viewed items and featured recommendations. Read instantly on your browser with Kindle for Web. $4.39. Revealed: The Smart Money Behind Techs Big Run. Its more challenging than just viewing where big money flows are going. SEIZE CONTROL OF YOUR FINANCIAL DESTINY - Get a custom-designed educational package tailored to your individual trading needs, skill level, and schedule. 2023 Benzinga.com. This activity is particularly ripe for trade ideas. 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 See Unusual Activity In Abercrombie & Fitch, Under Reviewed in the United States on October 26, 2020. When the stock was trading at $25, options traders began buying the December $30 calls. Pete and Jon are the sons of famous surgeon John Najarian . 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. 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. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. 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. Dont Make These Rookie Mistakes with UOA. This article was last updated on 12/14/2022. Open interest: Open interest is the amount of contracts outstanding in the market. 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. I absolutely loved this book. Najarian explained that this is a bearish bet because SQQQ is the short ETF and he thinks the trade might be a protection. Lets say that we see 10,000 calls are purchased versus open interest of 250 contracts. The dirty secret on Wall Street is that often news leaks, of earnings reports, upgrades or downgrades, drug trials, or other major, market-moving news, in advance of the news becoming public. More than 10,000 contracts of the October $15 calls were traded for 20 cents in the first half of the session. In even simpler terms, youre looking for a polar bear walking on a beach. Starting in November 2020, we noticed that Gluu Mobile Inc. (GLUU) was starting to heat up. And that is information that we act on. 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. Lets take a look at a few recent examples. Some sites have compiled free screeners that use a one-factor model to present unusual options activity. Please don't even THINK ABOUT BUYING! Get a daily dose of unusual options activity. There was a problem loading your book clubs. 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 Jon Najarian noticed high options volume in the November 205 calls in NVIDIA Corporation NVDA ahead of earnings. That means someone is making an unusually big bet (1,000,000 share equivalent) in the direction of the price. Volume: Volume is the number of trades over a given time period. Traders were buying the November $49 calls in the name. It might. The Najarian brothers and Jim Cramer are just journalist with their own hidden agendas. Theres nothing wrong with that; its just not unusual options activity. It is a how to guide that shares . When Wall Street moves into (or out of) a company, sector, or theme, the smaller options market is often the first place its noticeable. Follow The Smart Money - Unusual Option Activity - #1 Way We Choos - VERY GOOD. It's mostly biographies of these crooks. 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. By looking at options activity, we can see the footprints of how theyre moving before the rest of the market does. He already owns the stock and he believes it has some upside potential, because it's lagging behind Wynn Resorts, Limited WYNN. SEIZE CONTROL OF YOUR FINANCIAL DESTINY - Get a . . : Watch and see how we follow the Smart Money with Unusual Option Activity. These positions ultimately move stock prices in big ways, but the cause and effect may not be immediate. Sanofi SA SNY was also active. 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. That doesnt mean that if there was large call buying activity well out-of-the-money, it wouldnt flag as unusual. He explained that traders were buying the November 24 calls Monday. Jon Najarian saw unusual activity in Aimmune Therapeutics Inc AIMT.When the stock was trading at $25, options traders began buying the December $30 calls. Najarian Brothers Highlight Unusual Option Activity In - Benzinga On the opposite side, it doesnt mean that a large trade executed on the offer with a close expiration date is unusual. The Najarian brothers bring a unique perspective to trading that is built upon excellence in sports and education. Unusual Options Activity Trading Guide | Market Rebellion Someone is making a big bet (1,000,000 share equivalent) in the direction of the price. Around 10,000 contracts of the November 35.50 calls were trade and there was also some volume in puts, but Pete Najarian sees the put options activity in Pfizer as protection buying. 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. This is the date by which an option either has to be exercised or the contract is void. 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. Amazon.com: Customer reviews: Follow The Smart Money - Unusual Option Around 5,000 contracts of the December $49 calls in Metlife Inc (NYSE: MET) were traded for 80 cents. And these are exactly the times (ahead of major market events) that they may be active. But, you should also realize that this is still a probability-based analysis. Jon and Pete Najarian pioneered Unusual Options Activity trading strategies to follow the "smart money". Najarian Brothers See Unusual Options Activity In Bed Bath & Beyond If you are interested in unusual options activity because of exponential gains from front-running potential news, thats normal. BTW - I dont think there is an easy way to learn the Greeks. Check out Unusual Option Activity Pro. Starting in 2021, our Heat Seeker algorithm spotted consistent activity in Tilray (TLRY), one of the leading marijuana stocks. Sorry, there was a problem loading this page. Market Rebellion is not giving investment advice, tax advice, legal advice, or other professional advice. But the one method for finding trade ideas that has stood the test of time, in our experience, is unusual options activity. But that was nothing compared to these call options, which gained 11-times their value immediately following the event. Surprisingly informative. Pete Najarian spoke about high options activity in Taiwan Semiconductor Mfg. The orange dots indicate what we call unusual unusual options activity. Theyll be talking options trading as they break down the latest market action in the midst of a jam-packed week of earnings. 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. Unable to add item to List. 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. Reviewed in the United States on March 12, 2021. Thats where experience and added research come into play. 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. Unusual options activity is how we Follow the Smart Money in our trades. There are many different ways to find trade ideas. It takes analysis and work, and then proper position sizing and management. Whether we're talking about thousand-dollar donations to food banks, tables-full of video game. Brief content visible, double tap to read full content. Co. Ltd. (NYSE: TSM ). Almost 30,000 contracts were traded in the first half of the session. The trade breaks even at $19.15 or 9.12% above the current stock price. Watch each day as Jon Najarian gives you three UOA trade ideas live in [emailprotected] with Jon Najarian. Please try again. Jon & Pete Najarian are the unusual options activity pioneers. FOLLOW THE SMART MONEY Unusual Option Activity JON & PETE NAJARIAN BOOK NEW. We, Yahoo, are part of the Yahoo family of brands. True, that is a necessary condition of unusual options activity, but it is not sufficient to trade off of the order flow. Full content visible, double tap to read brief content. 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. With the stock trading for roughly $38, these traders were betting on a BIG, outsized move to the upside in just a few monthsby purchasing short-dated call options more than $5 out-of-the-money. Full content visible, double tap to read brief content. This is a perfect example of how powerful unusual options activity can be. Follow The Smart Money - Unusual Option Activity: #1 Way We Choose Our All Rights Reserved. Starting in March 2022, we began identifying unusual call buying in social media giant Twitter (TWTR). This doesnt mean that all of these trades are actionable. Inside each of these categories, there are dozens of different strategiesmost of which go in and out of favor. Follow The Smart Money is an excellent book for those who are interested in learning about options, the stock market, and unusual options activity. In order to get the most from UOA order flow, you have to commit to more than a few trades. I absolutely loved this book. FOLLOW YOUR MONEY INTO JOHN AND PETES' POCKETS!- A TRUE TITLE! 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. Lofty Expectations Meet Lofty Valuations at Teslas 2023 Investor Day. As always, thanks for being part of this growing Rebellion of traders. Reviewed in the United States on May 4, 2021. Heres a glimpse at Market Rebellions unique approach to trading the UOA strategy: Our Unusual Options Activity Philosophy Explained. Thats where experience and added research come into play. 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.