Hello Everyone, I usually hear on the financial news of someone who just purchased 2000 naked calls for stock xyz and how the trader/financial news host also took a position based on the speculation... I have two questions: * What is the fastest way to see such large positions being bought. The goal is to have that data early enough to assess the underline and decide if the position makes sense to me. * Is there a platform that specializes in market analysis (ie, no brokerage account). Just real time charts, quotes, those huge volume position alerts etc... I am with IB however, looking for an intuitive/affordable real-time market analysis platform. Thanks in Advance, Mike
I like Trade-Alert for options unusual activity. There are numerous other sources - they can get pricey.
I believe the Najarian Brothers provide a service like this...they monitor weird option buy anomalies , And transfer that information to you for you to disseminate, and act on...if you wish, I would be careful and cautious though... Following so-called smart or big money trades...is not an instant gold mine, even far from it, You have to know what you're doing in the market; this is not a place to be hasty, Don't be so happy and sold...just because one or a few trades worked out. You have to look at and consider the collective picture of things...and most likely, the end result won't be as rosy as those initial fun one's, If you're seeking a suggestion trade service...you are doomed for failure. You have to be your own Shepherd, and not simply be guided by one like an innocent sheep, The mere fact that you're here on ET...shows you have the initiative and desire to be a great trader. and not simply settle as just a subscription blind follower. Looking at just Weird or unusual option Volume is dangerous to assume and trade on. May the farce be with you on your journey, ET extraterrestrial
@lawrence-lugar Hit it on the nose... How did you know? I recently followed suite on a WTF October 4.50 knowing absolutely nothing about the company 100% speculation with 0% homework... And it net me 40%. I really don't want to wait to hear it from someone, it's probably almost too late by then... i would like a tool that would tell me of such "anomalies". And if it makes sense, then I can act as well... We can call it the monkey see monkey do strategy . I am taking what you say as grain of salt. I understand that following market maker moves is not the best approach, it more of a "what if". Can I pay for this tool as a service?
And I don't want to limit myself to just large naked call and put positions... Also, the inverse ie, large shorting activity, sell offs etc...
There's no point in looking at this. 1. you don't know who instigated the trade, was it a buyer or a seller? 2. you don't know what his position is, is he merely hedging an existing position or creating a new one? 3. Even if you do know who instigated the trade and that it's a new position... you don't know whether he hedged it or not. Regarding 3, if I were to buy a call, say 110 strike and hedge it with delta 20... spot at 100... where do I want it to go? Obviously it would be great if it goes to 150... but there are 2 break even points and the closest one is actually <100. So as a buyer of that call with delta hedge, initially I would want it to go down... not up! So... really... you just don't know the underlying strategy.
I was going to reply to this thread and then noticed JackRab said all there is to say about this subject. Read his words, think about them, read them again, print them out, frame them and put them up somewhere where you can read them before you put on a trade based on useless (or at least misleading) information. With options you never know, because you have no access to the trader's full position. Of course a large Open Interest and/or Daily Volume would indicate good or improving liquidity (which in itself is important when putting on a trade) but if you are looking for a directional tell you are barking up the wrong tree here.
https://whatstrading.trade-alert.com/wt/stories/@ALL $149 a month https://whatstrading.trade-alert.com/accounts/pricingtables/
The nice thing about Trade Alert is that he also writes up a commentary on many of the trades. Was it tied to stock - was it a qualified cross - was it algoed across multiple exchanges. Even if I wasn't going to use it trade off of - I will still like to know as a market/industry barometer. Henry Schwartz is the CEO and I'll venture you may be able to get a short trial to test it out. Folks are correct that it rarely works as a simple black and white buy/sell, but I do think it can be a valuable barometer - especially if I have a position in the name.