Southwest’s +100% Smart Money Case Study - InvestingChannel

Southwest’s +100% Smart Money Case Study

Weekends are for the brave and smart to get a jump on the upcoming week. Let’s look at how TrackStar can support you with trading decisions… and I have a fun little story about how it helped me last week… 

As you know, TrackStar sources its research from the most qualified financial audience data available on the Internet. Recently, TrackStar captured amplified financial professional engagement with information related to the travel industry. 

Airlines, including Southwest Airlines (NYSE: LUV), recently received grants exceeding $25 billion as part of the Coronavirus Aid, Relief, and Economic Securities (CARES) Act. This was likely what professional investors had been anticipating.

Souce: CNBC

While many traders jumped at buying airline stock during the temporary price dip, I firmly abstained from doing so. Given preceding optimistic media reports of the impending relief, I speculated that it was most likely the case that price adjustments in the market already reflected the anticipation of the bailouts.

In order to attain reassurance of my reasoning, I examined TrackStar’s exclusive financial professional database to help me calibrate the interest in airline stocks among financial professionals in recent weeks. The hidden secrets TrackStar’s data revealed included a significant drop in travel industry content consumption right after the president ratified the CARES Act into law. For instance, the finpro traffic on pages related to Southwest Airlines (NYSE: TrackStar data points, I discovered Southwest Airlines chart and data attracted more financial professionals during the past few weeks than that of the other low-cost major mainline carriers.

To build on that signal, I noticed a bearish bet of $293,670 placed on Southwest (NYSE: LUV) April 24 $28 Put options. I felt it was quite improbable that it stemmed from a retail trader, as most simply don’t have that kind of money or chutzpah!

I suspect trades of that nature are institutional transactions… or maybe even insider trading.

Finally, after reviewing the chart and applying technical analysis, I was convinced my hypothesis  was a reality. I immediately placed the same exact trade, buying to open LUV April 24 $28 Put options at $0.50 per contract with a plan to profit – right alongside Wall Street’s greed. 

Source: CNBC

My analysis, both technical and fundamental, paid off… While the stock dropped a few percentage points overnight, I sold to close my LUV April 24 $28 Put options at $1 per contract… a +100% return on investment.

And wouldn’t you know it, minutes prior to my order went through, several famous financial publishers aired on television issuing a “sell” opinion on Southwest Airlines, echoing my exact theory from the beginning. Airline stocks immediately proceeded to make new lows.

Souce: CNBC

One can’t help but wonder… “how in the world did this story piece together the way it did?”

Someone knew, or had an inside instinct, of ‘something’ in advance… I just participated in the move itself and padded my pockets with a double in less than 24 hours.

Wall Street gets their hands on information of this nature ahead of time on a daily basis. Funds and algorithms make sizable “smart money” bets on the moves they do for a reason…

And this is only one of MANY examples I could walk you through today!

But where could individuals just like you get your hands on this same material – before it hits the news?

Pairing financial professional sentiment sourced by TrackStar with my paid research software, I make trades of this nature on a daily basis.

With a highly profitable and seasoned trader in your corner every single day… you could be doing the same.

I’ll be in touch on Monday!


Davis Martin
America’s #1 Premarket and Day Trader

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