21
Why Market Insiders Are Not Always Smart Money

Why Market Insiders Are Not Always Smart Money

Embed Size (px)

DESCRIPTION

If you followed every unusual options activity order during the trading session…you might end up running out of capital before lunch time. What I’m trying to say is that there are literally hundreds of large option block trades a day. After you watch the case study video below, you’ll be able to understand that spotting an unusual options order is just the first step of the process. Too many times option investors don’t take the time to analyze the order…they simply copy and paste the same exact trade the institution made. By following that approach you’ll sometimes have to endure several losses before potentially reaping the rewards. Some option investors are not capable of enduring that kind of psychological pain and frustration. This doesn’t mean that following unusual options activity is a waste a time. It’s actually the best tool for generating investment ideas. However, you’ve got to be able to analyze the orders before you can select the proper strategy.

Citation preview

Page 1: Why Market Insiders Are Not Always Smart Money

Why Market Insiders Are Not Always Smart Money

Page 2: Why Market Insiders Are Not Always Smart Money

If you followed every unusual options activity order during the trading session…you might end up running out of capital before lunch time.

Page 3: Why Market Insiders Are Not Always Smart Money

What I’m trying to say is that there are literally hundreds of large option block trades a day.

Page 4: Why Market Insiders Are Not Always Smart Money

After you watch the case study video below, you’ll be able to understand that spotting an unusual options order is just the first step of the process.

Page 5: Why Market Insiders Are Not Always Smart Money

Too many times option investors don’t take the time to analyze the order…they simply copy and paste the same exact trade the institution made.

Page 6: Why Market Insiders Are Not Always Smart Money

By following that approach you’ll sometimes have to endure several losses before potentially reaping the rewards. Some option investors are not capable of enduring that kind of psychological pain and frustration.

Page 7: Why Market Insiders Are Not Always Smart Money

This doesn’t mean that following unusual options activity is a waste a time. It’s actually the best tool for generating investment ideas. However, you’ve got to be able to analyze the orders before you can select the proper strategy.

Page 8: Why Market Insiders Are Not Always Smart Money

This is why I created The SIZZLE Method Report after receiving a emails from people asking me about my approach and hearing the frustrations from people losing money chasing trying to chase every trade and learning the hard way.

Page 9: Why Market Insiders Are Not Always Smart Money

You see, all we know is that a large player in the market is expressing their ideas with options. We don’t know how much capital they’re working with…whether the options are used as a hedge or for speculation.

Page 10: Why Market Insiders Are Not Always Smart Money

Sometimes they are wrong and they lose a lot of money…or what seems like a lot to you and I.

Page 11: Why Market Insiders Are Not Always Smart Money

Let’s put things into perspective.

Page 12: Why Market Insiders Are Not Always Smart Money

Let’s say an institution has $1 billion dollars under management and they go out and buy $200,000 worth of upside calls in a stock. Sure, it’s a big bet to you and I…but if they’re dead wrong on the investment idea…they aren’t going to be closing down their business off that one trade.

Page 13: Why Market Insiders Are Not Always Smart Money

Furthermore, we can still take their ideas…but instead of copying their trade verbatim, we try to structure trades that skew the risk/reward more towards our favor and manage our risk.

Page 14: Why Market Insiders Are Not Always Smart Money

Like you will learn in the video as I explain my thought process when I spotted an unusual options order, that was likely and insider.

Page 15: Why Market Insiders Are Not Always Smart Money

The insider was right, but still lost money…

Page 16: Why Market Insiders Are Not Always Smart Money

In the video, you’ll learn the kind of questions you should be asking once you spot an interesting idea… and how to scan through an options chain to gather valuable information.

Page 17: Why Market Insiders Are Not Always Smart Money

Also, how to generate alternative trade ideas that have a higher probability of success and using unusual options activity to generate investment ideas.

Page 18: Why Market Insiders Are Not Always Smart Money

After you watch the video I’d like to hear your thoughts. Are any of the concepts in the video new to you or are they incorporated in what you’re currently doing?