For The Second Time This Week, Odd Activity Works Out......
First the Sierra Wireless risk reversal I noted ended up in a buyout of SWIR at over $30/share and now, we ge a big 10% jump in NLOK this morning after repeated call buying and put buying I noted combined with a $60m insider buy in June. I always tell you fundamentals mean significantly less than charts and options flows for a reason, all the dirty deals of wall street get done in the options market. As if SWIR wasn’t enough proof for you 2 days ago, lets take a look at how many times I noted NLOK odd options activity after the insider buy in here, look back.
On July 5th someone bought 4500 August 25 calls
On July 6th someone bought 4400 September 25/27 call spreads
On July 13th someone bought 2000 August 23 calls
On July 13th someone bought 2000 August 24 calls
On July 19th someone bought 1200 August 24 calls
On July 21st someone put on a risk reversal selling Septemeber 22 puts to buy 27 calls 20,000 times
On July 27th someone bought 1300 September 25 calls
Safe to say these weren’t just random trades, they all targeted August and guess what, the stock closed at $24.78 yesterday and it is $26.46 as I type this. Look where all those calls are , much like the magical 25/30 SWIR call spread and the stock gets bought out a hair over $30
I first noted it on July 18th, of course only 1 person liked it because its not a momo name but the signs were there that something was coming.
Then a few days ago I highlighted the insider buy again.
When I say its crucial to pay attention to the options market, I mean it, this trumps fundamentals. Sorry, its just the truth. You can model all the stuff you want, but it doesn’t matter, the charts tell a story of how funds are positioning in a name, that is more important, by alot.
In fact look how nice the chart was as I noted a week back
Combine the charts with options flows and you have the recipe for success and thats what I try to provide everyday highlighting the oddest trades I see in here.
Thanks a lot for the options flows and charts! I made some nice profits on Pinterest and PayPal recently so that paid my membership already :) I just use it for long positions. I don't have enough cash for stock options but even that makes some nice profit.