I got a great question during today’s live Profit Takeover show…

Finally$$$ was asking about why I care what big paper is trading.

And that’s a really important question to answer and to understand. 

I took a few minutes to explain:

  1. Why big money flow matters
  2. How the “gravity effect” works
  3. What this means for retail traders

Watch this portion of the replay to see my answers…

Thanks again to Finally$$$ for such a great question.

And speaking of big money flow…

A major player sold 50,000 of the January 2023 UMC $7.50 calls for $0.35 paired with a stock play buying 1.9 million shares for $6.72…

That’s a pretty bullish play.

It looks like this graphed out:

It’s a volatility play – meaning this trader expects the stock to meander up to $7.50 but not completely rip higher. They aren’t expecting a wild move but they are betting UMC is heading up. 

There are a couple different ways we could piggyback on this directional play. 

The first would be to sell puts… but there isn’t much as far as profit potential there. 

Another idea that I like better would be to piggyback with a covered call butterfly like this one:

Unofficial Trade Suggestion: Open the UMC January 20, 2023 $5-$7-$10 call butterfly for $1.15 or less. 

This is the type of trade I would walk through and track in the Profit Revolution Lifetime room. 

I dropped an ET trade in the Profit Revolution Lifetime trading room this morning – if you saw my live Profit Takeover show, you got a sneak peek.

And I’ll be going live with them tomorrow at 1:00 p.m. (ET). 

If you aren’t already a Lifetime member, join me.

Or call Gabe and his team to find out more at: 877-848-3418.

Until next time,

Mark Sebastian


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