One of my favorite tools to use is my Dollar Ace Scanner.
You see, I don’t have to go hunting for trade ideas — I let the smart money “bring” them to me.
What do I mean by that?
Well, I just look at the order flow. I have special filters that help me detect unusual options activity, and typically, it’s an indication for me a stock is likely to move in a certain direction.
Basically, I just look at the scanner and conduct my due diligence.
Today, I want to show you one smart money trade I uncovered right off the Dollar Ace Scanner, and how I locked in a 110% in just one trading day.*
How The “Smart Money” Telegraphed The Move In HALO Options
On Friday, I noticed large options traders were throwing down bets in Halozyme Therapeutics (HALO).
They were at it on the $44 Dec. 18 calls. An 800 lot went off, as well as a 500 lot… respectively, those bets amounted to $60K and $37.5K.
I don’t know about you, but I think whoever is throwing down bets like that have large financial backing.
You see, at the time, the stock was trading right around the $40 level. That means they needed the stock to move by at least 10% just to break even.
For me, that was a clue the smart money left behind.
Once I saw that action on my scanner, I had to pounce. Here’s what I sent out at 10:02 AM ET on Friday.
I bought 20 HALO December 18 $44 Calls at .78 off the live scanner.
A biotech name I’ve followed over the years that I like that I’ve seen have successful unusual option activity multiple times.
Seeing a big buyer today on the live scanner really perked my interest.
Well, guess what happened this morning?
The company announced a press release.
Did the traders who purchased those HALO calls know about this?
I don’t know, but I can only speculate. This is how I’ve leveled the playing field with the smart money players.
I know what you’re probably thinking…
What did those options do, did you make money?
Those HALO options exploded and I locked in a 111% win!*
Listen, I gave you a glimpse of what comes across my screen, but the key is to understand how unusual options activity works.
It’s one strategy I believe all traders should utilize right now because I’ve noticed these large players are throwing down massive bets left and right.