Someone knew something, as per the usual…
News broke this week that Warren Buffett’s Berkshire Hathaway sank a cool $4.2 billion into about 121 million shares of tech hardware company HP Inc. (NYSE: HPQ)… a boring stock for the most part.
And wouldn’t you know, a big trader bought a boatload of the monthly April $40 strike calls, spending over $600,000 on 6,000 contracts back on March 29.
That’s an unusual bet for this stock, or “unusual options activity,” as I like to say…
But what really makes this big order different from others is what happened next…
Insider Option Buying: The Drop Before the Pop
The stock then had about a 15% drop, sinking the calls to just 2 cents a contract.
Then the Buffett stake was revealed… and the news sent shares — and those calls — to the moon!
HPQ shot from just under $35 a share on Wednesday to over $41 by Thursday morning…
Let’s think about that dip for a second…
Your $600,000 investment sinks to about $12,000 in four days. And then BANG, that $12,000 becomes about $1.2 million… overnight.
Perfectly normal behavior, right?
No, not at all. Clearly, someone knew something…
These big-money, institutional traders have confidence, but not that much confidence… not without having information the rest of us don’t.
This. Is. Why. We. Follow. The. Order. Flow.
Check out the quick clip from Friday’s LIVE War Room trading session and see this insider option buying for yourself.
P.S. Corporate insiders raked in a record-breaking $69 billion in trading returns in 2021…
It’s led many to believe these huge gains made by top-ranking corporate executives have spiraled out of control. And for good reason…
If you’re one of the many American investors who feel cheated, you’ll want to check out what New Money Crew Head Trader Lance Ippolito has to say…
He believes this $69 billion spiral is one of the best opportunities in the stock market… if you know how to play it, of course!
