Markets have been horrendous as the major indexes spent most of the past week giving up their gains from Federal Reserve Chair Jerome Powell’s pump job.
But while stocks were treading water, that wasn’t the case for short-term order flow — although some of it came from unlikely places like China ADR options!
Regardless of the source, the unusual options flow has our New Money Crew strategies firing on all cylinders…
And if you’ve been paying attention to Blitz Daily recently, a few of these names are going to sound familiar!
No Chill in Netflix Calls
First on the list Friday is the big news hitting the headlines for Netflix Inc. (Nasdaq: NFLX)…
My scanner spotted a few massive orders earlier this week, with our Weekly Blitz Alerts strategy reeling in 46.8%* overnight on the NFLX Dec. 9 expiration, $312.50 strike calls — BANG!
But that’s only the beginning — an hour after we took profits, big-money traders came back for more!
This time they went after what were the weekly at-the-money $305 calls for about $5.55 per contract, which I highlighted in Wednesday’s Blitz Daily!
Fast-forward to Friday morning when analysts over at Wells Fargo & Co. (NYSE: WFC) upgraded the streaming giant to “overweight,” and shares spiked as much as 6% from their previous closing price…
That move launched those calls into the stratosphere, topping out at $23.71 a contract — 327%** higher from when they hit the tape!
Blitz continues to run hot, stretching out our average return to 13.3% — including all winners and losers — with a 66.7% win rate and an average hold time of eight days since we launched it back on Feb. 21, 2020! You gotta love it!
China ADR Options: The Stocks May Not Be Investable — But They Are Tradeable!
Of course, you can only trade the market that’s in front of you…
And unfortunately, not every trade that rolls across the wire is going to be on top tech names like the FAANG stocks…
When markets get stuck moving sideways, sometimes you have to trust in the flow.
Now I know what I’ve said in the past about Chinese companies and their American Depository Receipt (ADR) stocks and options…
Names like Li Auto Inc. (Nasdaq: LI), Alibaba Group Holding Ltd. (NYSE: BABA) and Nio Inc. (NYSE: NIO) were fantastic trades through the heights of the pandemic, but that hasn’t been the case through most of 2022.
A lot of these companies are absolute junk — some of them have turned out to be outright frauds like Luckin Coffee…
So while you still won’t see me put my retirement money into Chinese companies — I won’t deny that when they’re moving, China ADR options can provide some fantastic short-term opportunities.
On Monday, our Heavyweight Trade Alerts strategy took profits on Chinese e-cigarette company RLX Technology Inc. (NYSE: RLX), scoring 55.5%* in three days. That crushes the 7.7% average return — including all winners and losers — and the eight-day average holding period since we launched the service on May 19!
During my Thursday takeover of Senior Strategist Roger Scott’s VIP Trade Room — be sure to check out the session here — I had my eye on Hello Group Inc. (NYSE: MOMO), the Match.com of China.
The image above is from one of my scanners, showing 1,000 contracts for the Dec. 16, $7 calls hitting the tape.
Those China ADR call options were trading for $0.40 when I called them out live…
And once again, market analysts sent the stock screaming to the upside — this time it was our friends at Morgan Stanley (NYSE: MS) — with those options hitting as high as $2.49!**
If any of you took one or more of these explosive trades, leave a comment or email me at lance@newmoneycrew.com so I can get your autograph!
Following order flow can be a life saver in a low-volume, sideways market like this one…
Because when markets stop trending, institutional options trades show us where money is moving in the near term where it can have explosive results!
Check out the videos and let’s talk about trading China ADR options flow and see me spot those MOMO calls!
P.S. The Fed Is at It Again…
In just a matter of days, the Federal Reserve is doing something that could send shockwaves yet again through the market…
Stocks could soar or plummet in a matter of minutes.
That’s why Chuck Hughes has been working on an underground project to help traders get in front of the big announcement…
But it’s not another alert service… It’s not a stock report…
It’s something much more powerful — and it can help give you a lifetime of trading opportunities.
That’s why Chuck is holding an emergency briefing with Senior Strategist Roger Scott to lay out the battle plan…
Right now, there are a few stocks sticking out like a sore thumb thanks to this discovery.
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*Stated results are atypical for given period. Past performance is not indicative of any future results. Trade at your own risk.
**This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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