24 Dec

How To Easily Generate Trade Ideas in 2020

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Happy Holidays!

As we come to the close of 2019, I’ve gone back and reviewed my performance… and boy, was it a fun ride. I worked really hard at doubling up on my strengths with options and avoided the mistakes that haunted me in the past.

It’s hard not to be motivated when you see your former students, guys like Nathan BearTaylor Conway, and Kyle Dennis crush these markets — day in and day out.

And by keeping a beginner’s mindset, this old dog has been able to learn new tricks and master skills I once thought were out of reach.

So naturally, when I witness what Kyle Dennis has been able to do with Dollar Ace, I wanted to learn more about it, and see exactly how he’s able to pull out massive winners regularly.

And let me tell you, from what I’ve found out, it’s pretty darn amazing.

You see, the Wall Street “insiders” and the massive funds out there make up a large part of the market. Some of them, are among the most informed traders in the world.

Kyle has discovered a unique way to tap into these billion-dollar minds and use it to profit for himself and his clients.

It’s based on unusual options activity (UOA). Basically, it allows you to use powerful leverage and insight to gain massive profits in the stock market.

Wall Street Insiders Can’t Hide Their Trades From Kyle

If you don’t know, every options contract traded on the U.S. market must be reported to the Option Pricing Reporting Authority (OPRA). That means when a Wall Street “insider” places an options trade, they must report their buys and sells.

A lot of the time, these whales lay down bets worth hundreds of thousands — sometimes millions — of dollars on one single options trade.

You better believe that these Wall Street fat cats don’t just gamble. After all, they have “more money than god” and could afford the best research in the game and talk to the most important people in corporations and government.

There is a reason why they are often called “the smart money” and why some of them live on billionaire’s row.

After watching this training session, I now understand why Kyle tracks these “insiders.” Their footprints offer so much valuable information, it would be silly to ignore them.

In fact, once you know what to look for — you can simply piggyback off these trading giants.

And that’s what Kyle has been doing to reel in colossal winners consistently.

Here are the nuts and bolts behind one of his near triple-digit winners, and as you’ll see, all Kyle had to do was be there. The option’s strike and expiration were all “given” to him by the Wall Street insiders.

How To Easily Uncover Massive Winners In The Options Market

Step 1: Find massive options orders in relation to open interest.

Step 2: Look for new or opening positions. You can do this by comparing the options volume to its open interest. For example, check out the activity in Lumber Liquidators (LL).

More than 4,105 contracts traded on the $9.50 strike price calls and the open interest was 88.

Those calls were a new position because the volume was greater than the open interest. When open interest is the same as the volume it becomes muddy. For example, the trader could be closing the position or simply adding to one.

Step 3: Try to put the pieces of the puzzle together. There are thousands of options block trades done every single day. But according to Kyle, you can filter most of them out.

For example, if someone is buying calls ahead of an earnings event, they could be using options instead of stock because it’s less risky. This means they could be placing the trade to be risk-averse and not necessarily bullish on the stock.

So instead, Kyle says it’s better to jump into trades where the catalyst is unknown.

For example, the “insider” trade in LL didn’t have an upcoming catalyst. In fact, those options were set to expire in just about 2 weeks. So whatever the catalyst is, the smart money was betting that the move would happen pretty quick.

Step 4: Conduct your due diligence.

All Kyle has to really do is look at order flow and chart patterns. However, his clients don’t have to do that because Kyle does all the heavy lifting for them. Kyle detects these massive options orders, comes up with a watchlist and sends it out to his clients.

Here’s how it works in real time.

Kyle spotted a massive options order go off recently in Lumber Liquidators (LL).

Someone bought 2,409 $9.50 DEC 20 2019 calls in LL for a measly 30 cents a pop (remember, the open interest was just 88). Something was up.

However, Kyle doesn’t blindly follow these trades. He actually conducts his due diligence and looks for a bullish chart pattern.

Check out the daily chart in LL.

 

Lumber Liquidators formed a double bottom just below $8.50 and bounced right off that key level. Thereafter, LL actually started to trend higher. When you look at the chart, you’ll notice a key breakout level at $10.

Since the $10 level is typically a key psychological level, it could act as a magnet and pull the stock higher — potentially causing it to break out.

So what did Kyle do?

He followed suit and picked up those LL calls.

 

Take a wild guess at what happened with LL.

Lumber Liquidators released a positive catalyst just a few days later, and finished more than 15% higher!

 

Since Kyle traded the options, that 15%+ move was good for nearly a 100% winner!

 

With Dollar Ace, all the hard work is done for you.  The Wall Street “insiders” are greedy and will go to great lengths to secure a win. There is no reason to fight them, especially when you can simply tag along and profit off their “insider knowledge.”

I’m so glad that Kyle has presented another profit bucket for you to add to your trader’s toolbox. And I’m excited about this new opportunity and what it has to offer.

If you’re ready to learn how Dollar Ace can take you to the next levelclick here to watch this exclusive training session.

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