For the last couple of weeks, I’ve been tapping into some of the most colossal hedge funds on the planet.
Some of which have been closed to investors for years.
And while I do qualify as an accredited investor, I refuse to invest a dime with them.
Rather, I have been stealing their finest ideas and using them for personal gain.
Rest assured this all legal, and in a little bit, I’m going to show how you can too.
But before I do, let me tell you about my dirty little secret…
It all has to do with a loophole I discovered that exists in the options market.
You see, the financial regulators want more than anything: fair and transparent markets.
After all, if the investing public doesn’t trust Wall Street, they’d pull their money out. And no one can afford that (think about all the money individuals have in pension funds, IRAs, mutual funds, etc.)
So to help ensure transparency in the options market, we have OPRA – the Option Pricing Authority – no affiliation to Oprah, the multi-billion dollar media mogul.
Every options contract that trades on the U.S. stock market must be reported to OPRA. It doesn’t matter if it’s one contract or ten thousand contracts… if you place an options trade… OPRA knows about it.
That said, I’ve been using a proprietary options scanner that sniffs out gigantic trades in the market…
My scanner allows me to know, in real-time, what Wall Street’s most extravagant traders are doing.
All I have to do is copy and paste.
I’m not kidding.
Let me break down what I saw in Exelixis Inc. on Friday, and why I couldn’t help myself from swarming on the same options.
Unusual Options Activity At Its Finest
On an average day, Exelixis Inc. (EXEL) trades around 6,500 options contracts. That includes all strikes, expirations, calls and puts.
But on Friday, my unusual options scanner picked up some heavy… I mean heavy call buying. When the smoke cleared, 43,000 CALLS TRADED. That was SEVEN times the average call volume.
The options action was impressive to say the least.
At 10:47 AM someone blasted these calls:
647 EXEL Oct 22.0 Calls $0.605 Above Ask!
Minutes later… these fired off:
929 EXEL Oct 22.0 Calls $0.80 ASKSIDE
The buying was literally non-stop, and by 12:58 the options not only doubled in value… but some whale was still buying up calls:
488 EXEL Oct 22.0 Calls $1.25 ASKSIDE
There were a total of 25K calls that traded on the October 22 Call line!
That type of action is hard to stay under the radar… and it wasn’t too long after… that the options guys on CNBC were talking all about it:
But by the time the general public was hearing about these EXEL calls, I was already in a position to peel some off for some substantial profits.
Less than three hours later I sent out this alert:
Here’s Why I Was So Compelled To Jump In:
- Aggressive call buying throughout the day, nearly each block trade was on the ask side, a sign that the trader was attacking the calls.
- Multiple call lines were bought (different strike prices and expiration periods). In fact, I decided to buy near-dated options and pay less.
- Out-of-the-money options were bought. That means someone needs the stock to move… and move fast to profit.
Of course, there are several other reasons why I dove into EXEL calls. But I’m reserving that information for my Dollar Ace clients. I actually made a video about it and sent it to Dollar members to study, if you’re not a member and would like to join then click here now.
New Alerts Are On The Way
There are hundreds of unusual options activity trades every single day… my proprietary scanner picks up on the most compelling ones… it’s able to pick up a handful in real-time every single trading day.
In other words, the next triple-digit could be around the corner.
Not a Dollar Ace Client yet?
What are you waiting for… the water is warm… and the sharks are friendly.