Why Big Money Matters
I got a great question during today’s live Profit Takeover show…
Finally$$$ was asking about why I care what big paper is trading.
And that’s a really important question to answer and to understand.
I took a few minutes to explain:
- Why big money flow matters
- How the “gravity effect” works
- What this means for retail traders
Watch this portion of the replay to see my answers…
Thanks again to Finally$$$ 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,
August 24 2022
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