Gravitational Pull to Profit

Massive paper players don’t know options the way I do.

They know stocks, and they have enough money to cause massive “gravity effects” when they make plays.

But I can take the SMART big money plays I see, and using my options expertise, make better moves for traders with retail accounts.

And that’s exactly what I did when I saw a big-money trader buy 59,000 PBR call spreads on July 22.

The following Monday, the gravity effect came into play…and another customer bought 40,000 call spreads, and another bought 7,500 calls.

So, I set up a piggyback trade for our first trade in the Inside Money Trader room and it made 92% in two weeks…

I recommended the PBR November 18, 2022 $13 Calls for $0.75 on July 25…

Traders sold the first half at $1.06 on July 29: 41% in four days
Then they sold 25% at $1.50 on August 1: 100% in one week
And this morning sold the remaining 25% at $2.15: 187% in two weeks

All for a weighted gain of 92% in two weeks!

Big money plays like the one in PBR happen all the time – and I am watching every day to analyze which are the SMART moves to piggyback.

And right now, I’m seeing the gravity effect in these two names too…

 

1. Peabody Energy Corporation (NYSE:BTU)

I saw a big money player in BTU use a stock-replacement strategy…

They are looking to profit BIG if BTU continues its push higher.

As I write this, BTU is trading at $20.31…

Image from wallstreet.ioIf they are right, this is one to consider piggybacking, but this stock could move the other direction.

2. Ford Motor Co. (NYSE:F)

F has rallied since mid-July…but we are seeing a little dip today.

It is trading at $15.35 as I write this…

Image from wallstreet.ioBig money bought massive amounts of near dated calls and call spreads looking for a move higher.

I found a way to piggyback the move in F in Inside Money Trader, and it has already made some profit… and we are hoping to close it out during the next move higher.

I will be taking a look at some more big money flow this afternoon at 3:00 p.m. (ET) during my live session of Inside Money Trader.

If you want to be there, SIGN UP NOW.

We’re even running a monthly offer to join for $49 – get this deal while you can.

Until next time,

Mark Sebastian

P.S. Celebrate with Us

This Thursday evening at 7:00, fellow Money Morning Live experts and I will be hosting a celebration to commemorate one year of trading!

CLICK HERE to save your seat.

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