We’re still seeing a lot of action in the market, as both sides haven’t come to an agreement yet. After more than 24 hours, China is still unaware of the phone calls with Trump…
… after he noted that they had good trade talks over the week.
However, none of the Chinese leaders or advisors have heard the phone ring, according to them.
I guess that’s The Art of the Deal.
This could be another one of Trump’s trade war tactics to get an upper hand.
How can you even begin to figure out where the market or stocks could head with so much uncertainty about the Trade War?
You follow the Wall Street “insiders”.
Well, it’s simple…
… these “insiders” are getting sloppy at hiding their trades in the options market… and all you have to do is follow the demand.
Just like the stock market, the options market is driven by supply and demand. However, in the stock market… sometimes it gets muddled when we’re trying to find clear areas of support (demand) and resistance (supply).
With options, it’s a totally different ball game.
In the options market – all trades are reported… no matter how big or small.
Since they are reported, it’s a bit harder for the Wall Street “insiders” to hide their trades, in which they might be placing bets on non-public information… and some are getting really sloppy with it.
I know what you’re thinking, Jason, isn’t that illegal?
However, that doesn’t mean you can’t follow their every move. You see, as long as you stick to following the demand – you have no idea what the information is. What that means is you can LEGALLY take advantage of the “insiders” and profit off their bets as well.
How do you do that?
Well, you use an options scanner.
What an options scanner does is tell you where the massive orders are – giving you clues as to where the market or stocks can head.
Think about it like this… “insiders” use the options market because it allows them to leverage their capital… and a lot of the times, they’re throwing down hundreds of thousands of dollars on trades.
When they do that and you have the right tools, you can actually figure out what can happen with a specific stock or the overall market.
Here’s what I’m talking about.
On Friday, we saw the SPDR S&P 500 ETF (SPY) close down 2.57%, as China noted it would be imposing new tariffs on U.S. goods… but there was no response from Trump yet.
Shortly after the market opened on Friday… the market wasn’t down a whole lot – and traders were actually focused on Powell’s speech – something that could’ve caused the market to bounce.
While that was going on, a massive SPY options trade went off… as someone purchased 3,526 SPY Aug. 26 2019 $287 puts for just 98 cents.
That position size was a whopping $345,548… and that signaled someone knew something… and the market could plummet.
I don’t know about you… but who’s throwing down a $345.5K bet on options expiring in one day?
Probably an “insider” who knew something big was about to hit the market…
… and what do you know… we got some tweets from Trump – shocking the market and causing it to plummet… proving to us the trade war isn’t over yet.
Here’s what happened with SPY that day…
What did those put options do?
They spiked all the way to $4.18!
A whopping 326% gain that very same day!
Could you have spotted that trade and figured the market was going to head lower?
Of course, in fact… if you were able to buy 10 contracts for a buck… you could’ve pulled in $3,180 in profits.
This isn’t just a one-off… we see this happen in the market all the time.
With trade war headlines looming… looking to the options market could give us clues as to whether stocks could pop or drop.
You’re probably wondering, How do I get in on this action?
With Kyle Dennis’ latest proprietary technology that allows you to spot these massive options orders hitting the tape ALL the time.
Not only can it tell you where the market is headed… but it could also tell you whether a specific stock will have a massive move.
All you have to do is take 5 minutes out of your busy schedule and watch 15:00 – 20:00 and you’ll know exactly how this strategy can maximize your returns while taking on limited risk.