Hello trader,
I hope you got off early for the holidays, and are enjoying some much-needed relaxation and time with friends and family. In the spirit of the holidays and the latest Star Wars moving dropping⦠I wanted to bring to your attention an [insider trading]( case that Yoda will not approve of.
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Walt Disney Co (DIS) is one of the hottest companies on the market⦠and it seems like theyâre always acquiring companies left and right. Itâs their way of showing their dominance and why theyâre able to put out such amazing content for the world.
For a company so massive, there will be some bad apples in there⦠those who donât play by the rules and dole out non-public information. I hate spoilers. [These âinsidersâ donât care if itâs illegal](, and I donât think they should work at a place that puts as much joy into peopleâs lives like Disney.
How One Well-Informed Trader Turned $5,400 into $192,000!
Back in 2011, there was a high-profile case that involved Marvel Entertainment (acquired by DIS) and Walt Disney Co. An investment manager â Toby Scammell (who was just 26 at the time) â had a girlfriend who worked at Marvel.
Scammell purchased some pretty deep out-of-the-money call options in Marvel in mid-August 2009. Heck, this guy didnât really try to hide his purchases. He dropped bought $45 and $50 strike price calls⦠and Marvel had never traded above $41.74 then.
Not only that, but the options he purchased were set to expire on Sept. 19, 2009⦠just weeks after the announcement. [Those trades were so unusual]( at the time that he was the entire open interest in some of those contracts. He was essentially the market in them.
Hereâs the kicker, he used his brotherâs account to buy those options. Before he bought them, he apparently searched for the terms âinsider tradingâ and âmaterial non-public informationâ. He knew something was up⦠and he even knew [what insider trading is](. Yet, he decided to place the bet ahead of this catalyst.
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Of course, he didnât even tell his girlfriend or brother he turned $5,400 into nearly $200,000⦠a whopping 3,000% return in less than a month.
According to Rosalind R. Tyson, director of the SECâs LA regional office at the time, âScammell exploited his romantic relationship for a financial windfall...His misuse of confidential information gave him an unfair and illegal edge over other traders in the markets.â
Scammellâs girlfriend wasnât charged with anything because she didnât mention the company name⦠but he may have overheard a conversation or even looked at her emails and work, who knows.
Piggybacking off baby Yodaâs company and trading off [inside information]( is no way to play this game.
The worst part about this is the fact there are still [well-informed traders out there who place unusual options activity tradesâ¦]( just as Scammell did.
However, what you may not know is the fact that [you can directly profit from their move](. Best of all, itâs 100% legal.
Becoming A Jedi Trader
[Dollar Ace is the one single strategy that helped me uncover massive profits]( in the options during the second half of 2019. I came up with a strategy that allows me to detect some pretty wild options bets.
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I realized [how Wall Streetâs elite and billionaires really operate](. They have access to inside information, and covertly place bets in the options market. All you have to do is find these trades and come up with a thesis. Itâs really that simple.
I donât know any of the information at all⦠everything [my Dollar Ace strategy]( utilizes is there for the public to see.
For example, check out this near-triple digit winner in Lumber Liquidators (LL).
I spotted an unusual options activity trade in LL. It wasnât as crazy as Scammellâs bet, but it was sizable. A whale came in and bought 2,409 calls in LL for 30 cents a piece, and those options had just about 2 weeks until expiration.
It was a clear signal someone knew something.
So what did I do?
I came up with a thesis, and followed suit.
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Guess what happened not too long after?
The company updated its 2019 financial outlook and raised guidance! Thatâs a massive catalyst that caused the stock to rocket higher.
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Sure, the stock moved a lot (more than 15% in a single day), but those options were up nearly 100%... and of course, I took my profits off the table.
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If you take just a little bit of time during your holiday and attend my special training session... [you will learn how you can effortlessly generate fresh trade ideas and uncover massive profits in the options market.](
Cheers to Profits!
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Kyle Dennis
[Special](
RagingBull, LLC
62 Calef Hwy. #233, Lee, NH 03861
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