AMA: Are You Following Robinhood Stocks?

by | Jul 23, 2020

There’s one question I keep getting asked…

Are you following Robinhood stocks?

Sure, I like to see what they’re trading…

However, I’m not actually “following” them when I see thousands of traders pile into a name.

To me, they’re reckless and chasing momentum… and I certainly don’t want to be part of the herd.

So what am I doing instead?

Following The Paper Trail.

More specifically, I’m following the “smart money” players in the market.

You see, these Wall Street players typically have an unfair advantage, and I’m a firm believer if I’m able to put the pieces of the puzzle together…

And figure out where they’re placing their bets, trading gets a lot easier.

The “smart money” often turns to the options market to place their bets, and a lot of the time they leave clues behind.

The key is to spot them and join in on the action.

How does one go about that?

 

How To Figure Out Where The “Smart Money” Is Making Moves

 

Sometimes I like to tell people my Dollar Ace Scanner is like having tomorrow’s paper in your hands a day early. 

A huge options block trade will fire off…

…and it’s not rare to see the stock in the headlines after.

The Robinhood traders will see these headlines and follow the action because they typically have FOMO.

The thing is, traders don’t always have to wait the next day to get that action. 

Sometimes you can be in and out of a trade in just a few minutes to an hour…

Before anyone even catches wind about the trade.

In fact, if you have an appetite for risk, I can tell you which ones are the most likely to pop off the fastest

For example, the other day, I saw some wild options action in Fireye (FEYE). 

At 9:51 AM, a “smart money” player came in and bought:

1704 July 24th $13.5 Calls

For An Average Price Of $0.22

And A Total Of $38K In Premium

Moments later, a flurry of more orders followed…this time it was in lots of 817…737..725…and 606.

Why was this action so important and what caught my attention?

First, these options expire on Friday. That means the trader needs the stock to move to their favor… fast.

You see, at the time those orders went off, FEYE was trading around $13.30. 

The options the “smart money” trader purchased were out of the money…meaning they were set to expire worthless if the price didn’t start moving up fast. 

More than 81K calls of FEYE traded on Wednesday, and 43K of those were the July 24th $13.5 Call contracts! 

And you know what else?

Within five minutes of that initial trade, those options shot up to $0.45. 

That’s right, they were sitting on 100% in gains.

What’s even crazier… the stock didn’t move a whole lot.

In fact, the stock just moved 15 cents, from $13.30 to $13.45.

Most traders dream about 100% returns…but to see one in five minutes is like catching lightning in a bottle. 

Now, you might be thinking it was a lucky trade and just a one off…

But that’s just not true.

What if I told you this wasn’t the first time FEYE calls went flying*…

I’ve shown regular folks how to utilize the Dollar Ace Scanner to generate trade ideas. 

You see, traders don’t need to try to figure out what the next hot Robinhood stock will be when the “smart money” leaves clues behind.

The information my Dollar Ace Scanner picks up on can be powerful, and I’m able to effortlessly generate trade ideas by following their moves.

If you’re wondering how this all works…

Register for this training workshop. 

Find out how to gain off the Wall Street “insiders” and legally steal their trade ideas.

 

*RagingBull does NOT track or verify subscribers’ individual trading results and these individual experiences should NOT be understood as typical as or representative. Results presented are not typical and may vary from person to person. Please see our full disclaimer here: ragingbull.com/disclaimer

 

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