I’m enjoying my best year ever as a trader. And I am now just $25K shy from hitting $500K in yearly trading profits. I’ve worked really hard at doubling up on my strengths and avoiding the mistakes that have haunted me in the past.
It’s hard not to be motivated when you see your former students, guys like Nathan Bear, Taylor Conway, and Kyle Dennis crush these markets– day in and day out.
And by keeping a beginner’s mindset, this old dog has been able to learn new tricks and master skills I once thought were out of reach.
So naturally, when I heard about Kyle’s latest options strategy, Dollar Ace, I wanted to learn more about it, and see why he’s so excited about it.
And let me tell you, from what I’ve found out, it’s pretty darn amazing.
You see, most of the trading volume (I should say nearly all of it) is done by institutional investors. Some of them, are among the most informed traders in the world. And Kyle has discovered a way to tap into these billion-dollar minds and use it to profit for himself and his subscribers.
It’s based on unusual options activity… and it allows you to use powerful leverage and insight to gain massive profits in the stock market.
Here’s the thing:
Evey options contract that trades on the U.S. market must be reported to OPRA, the Option Pricing Reporting Authority. That means when a whale-like Bill Ackman or Carl Icahn place an options trade they must report the transaction.
These guys are sometimes laying down millions of dollars on one single options trade. And you better believe that they’ve done their due diligence. After all, they can afford an army of analysts, gain access to the best research, and talk to the most important people in business and government.
There is a reason why they are often called “the smart money” and why some of them are in the billionaire club.
After watching this video, I now understand why Kyle is tracking these “insiders.” Their footprints offer so much valuable information, it would be silly to ignore them.
In fact, I’ve learned from Kyle that once you know what to look for (he uses a proprietary scanner to pinpoint the best unusual options activity trades)– you can simply piggyback off these trading giants.
And that’s what Kyle did yesterday when he flagged bullish options activity in YELP.
Here are the nuts and bolts behind the trade, and as you’ll see, all Kyle had to do was be there. The option’s strike and expiration were all given to him by very well informed traders.
You see, on a typical day, YELP trades 3500 call contracts. However, yesterday there were more than 18,000 contracts traded on the Aug30 $33 calls (at the time, they were out-of-the-money options…doomed to expire worthless before “insiders” jumped in).
Here’s a breakdown of what I’ve learned from Kyle’s process thus far:
Step One: Find options that are trading above-average volume.
Step Two: Look for new or opening positions. You can do this by comparing the options volume to its open interest. For example, check out the activity in YELP yesterday.
The $33 calls were a new position because the volume was greater than the open interest. When open interest is the same as volume, it becomes a trickier read. For example, the trader could be closing the position or simply adding to one.
Step Three: Try to put the pieces of the puzzle together. There are thousands of options block trades done every single day. But according to Kyle, you can filter most of them out. For example, if someone is buying calls ahead of an earnings event, they could be using options instead of stock because it’s less risky. Which means they could be placing the trade to be risk-averse and not necessarily bullish on the stock.
So instead, Kyle says it’s better to jump into trades where the catalyst is unknown. For example, the “insider” trade in YELP had nothing to do with earnings. In fact, these were options that expire on Friday. So whatever the catalyst is, the smart money was betting that the move would happen fast. But thanks to them, they spelled exactly what strike and expiration to follow, making it easy for anyone to tag along for the ride.
Step Four: The more activity the better. In the case with YELP, over 18,000 contracts traded on the Aug30 $33 line… but there where 33,000 calls in YELP traded total. According to Kyle, this was a very big tell. So much so, it even caught the attention of CNBC’s options traders.
(By the time you hear about it on TV or twitter it’s too late. Dollar Ace gives you real-time alerts to take full advantage of these opportunities. Join Now to unleash the power of UOA)
Luckily for Kyle and his subscribers, they are spotting this action in real-time… and by the time the Johnny-come-lately crowd hears about the trade on twitter or CNBC… Kyle and his gang are already in a position to peel off massive profits.
(Dollar Ace is the real deal… each trade has the potential of bringing back triple-digit returns or better. If you are not a subscriber, then join now and take advantage of this offer before it expires.)
No wonder Kyle is calling this his biggest trading breakthrough ever. Imagine no longer having to struggle to find good trade ideas, no longer having to scour through endless charts, and no longer have to stay up to read financial literature to gain an edge.
With Dollar Ace, all the hard work is done for you. These institutional traders are greedy and will go to great lengths to secure a win. There is no reason to fight them when you can simply tag along and profit off their “insider knowledge.”
Like I said earlier, I’m enjoying the best trading year of my life and its because I’ve kept an open mind and pushed myself outside my normal comfort zone.
I’m so glad that Kyle has presented another profit bucket for you to add to your trader’s toolbox. And I’m excited about this new opportunity and what it has to offer.