On Friday I mentioned I had taken a bet against Facebook in my afternoon email, after having sent you a basket of fresh trade ideas in the morning…
“Bought to open FB July 2 200 Puts at $1.30: The social media world (Facebook and Twitter both) are being hit pretty hard by put option buyers today and Facebook is down almost 7% as I’m typing with markets down significantly less than 7%. I’m definitely keeping an eye on this one this afternoon. If it breaks 50 sma support (red line below), just off the chart it could see the $210 area or lower, especially if markets remain red and Facebook gets hit with bad news.”
Only moments after, bearish news started dominating stock market headlines, and continues to do so over the weekend. Facebook is down over 4% in the premarket…
While many retail traders turn to news outlets such as CNBC to gather trade ideas, my most profitable trades are typically made as a result of getting into them BEFORE they hit CNBC and closing them as newbie retail investors scramble.
It’s how financial professionals make money as well…
Smart traders trade smart money – they don’t let smart money trade them!
|Ticker Code||Ticker Name||Ticker Industry||Price Change||Average Volume (50)*|
|MVIS||Microvision, Inc.||Scientific & Technical Instruments||21.21%||13,345,284|
|EROS||Eros International plc||Entertainment||-27.93%||3,195,175|
|SHIP||Seanergy Maritime Holdings Corp.||Marine Shipping||17.65%||132,631,017|
|INO||Inovio Pharmaceuticals Inc||Biotechnology||60.37%||39,076,901|
|XSPA||XpresSpa Group Inc||Personal Services||-38.69%||19,544,235|
|GE||General Electric Company||Specialty Industrial Machinery||-19.44%||114,345,002|
|ZOM||Zomedica Pharmaceuticals Corp||Drug Manufacturers – Specialty & Generic||29.17%||57,263,296|
|IDEX||Ideanomics Inc||Software – Application||73.97%||49,914,683|
|CBL||CBL & Associates Properties, Inc.||REIT – Retail||10.34%||18,734,665|
|GNC||GNC Holdings Inc||Pharmaceutical Retailers||-11.29%||10,743,091|
|SHLL||Tortoise Acquisition Corp Class A||Conglomerates||59.06%||3,504,495|
|EKSO||Ekso Bionics Holdings Inc||Medical Instruments & Supplies||43.56%||5,644,055|
|SINT||SINTX Technologies Inc||Medical Devices||64.22%||12,376,478|
|SRNE||Sorrento Therapeutics Inc||Biotechnology||34.24%||59,054,842|
|IZEA||IZEA Worldwide Inc||Internet Content & Information||43.64%||20,737,814|
|ETHE||Grayscale Ethereum Trust (ETH)||Commodity contracts brokers and dealers||-175.38%||62,196|
|BIOX||Bioceres Crop Solutions Corp||Agricultural Inputs||10.71%||31,137|
Friday’s trading session was highlighted by one of my best day trades of this month.
It took about 30 minutes…
And as we enter a brand new week, believe it or not, small-cap stocks with options available to be traded on them are on high radar amongst financial professionals with $1B+ in assets under management.
I believe I know exactly why…
Oftentimes small-cap stocks catch a poor reputation for being pump-and-dump stocks in which “one trader wins and everyone else loses.” I agree with that reputation, but that’s not how options work!
You see, options are highly liquid (significantly more liquid than small-cap stocks) and when options on small-cap stocks start being traded by institutional traders, then you know an explosive move might be right around the corner…
The latest small-cap stock I’m seeing financial professional sentiment to trade is Ideanomics Inc (NYSE: IDEX), which recently went up about 400% in only four days…
While IDEX is currently being investigated, I’ll get over it – small-cap companies are often terrible companies to begin with and are frequently in and out of trouble on top of having a high cash burn rate.
What can make small-cap stocks profitable is bullish catalysts, and oftentimes financial professionals know about these events before they happen, and make wildly profitable trades as a result, and run off with fat paychecks while retail traders are stuck in the dark.
Fortunately, using my paid research software, I can see where financial professional sentiment is and make a move myself if I want to!
How? Unusual options activity and the dark pools. While it may sound complicated, I make it nice and easy.
Just last week, big money option players came in and bought $236k worth of IDEX July 17 5 Calls in a 90 minute period. Do they know something we don’t?
Time will tell, but for now I’ve got my eyes on making the same move if IDEX holds its 20-day simple moving average line shown in green on the chart above! Below its 20-day simple moving average line, and I may look for a fast moving day trade opportunity on IDEX to the downside.
Keep an eye on your inbox this afternoon as I’ll be sending you a fresh watchlist including any profitio updates!
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.