Big Paper Bought 18,500 Puts in NKLA

Big money can trick you.

Yesterday, I saw a massive 18,500-lot play in NKLA. But this big-money trader wasn’t just playing straight calls or puts…

They were playing both:

You’re looking at 18,438 of the September 16, 2022 $5.50 puts against 9,219 of the September 16, 2022 $6 calls.

The average retail trader won’t know what that means.

But I used to work on the CBOE – and I saw the big-time traders pull moves like these all the time.

This buyer is betting that NKLA is heading lower…

A lot lower.

In fact, this is called a one-by-two risk reversal play, and it’s what I’d call super bearish.

But it’s not what I’d call super easy.

I’m not interested in setting up a complicated one-by-two risk reversal – and neither is the average retail trader.

If you want to bet on NKLA going lower, there’s a better trade at stake here – one that this big-time trader is ignoring.

And yesterday, during the Profit Revolution show, that’s exactly what we traded:

This trade is so far under the big money’s radar that I can only share it with my Profit Revolution members.

But it’s still in play… and you can become a member if you want the details – just click here.

Now, NKLA isn’t the only bearish name on my radar today.

In fact, there are two more stocks in the trenches – and I’m looking to buy the dip…

FCX is getting smoked, and I am looking for an entry price.

It’s currently trading at $29.72…

Image from wallstreet.io

I am going to wait for volatility to come down and see if I can get in for cheap because short-term I think FCX is heading higher.

CSX is in a similar situation as FCX and I think it could make similar moves.

Right now it is trading at $31.76…

I am going to get in CSX when I see cheap calls since I think it could head up soon.

Until next time,

Mark Sebastian