As retail investors, we’re already at a disadvantage to the “smart money” — hedge funds, institutions, professional traders…
So we look for any information that can give us a leg up.
Some investors comb through 13Fs, the quarterly reports hedge funds are required to file showing their stock holdings.
But why get into a stock position late, when you could follow the big money into their options positions ahead of each weekend?
That’s the idea behind my Wiretap Trade Alerts system.
I explained how this works in Thursday’s free webinar, and I even shared three trades on my watchlist!
If you missed the webinar, don’t worry, I have you covered — I’m going to share how my system works, as well as give you those three trades I’m watching.
The 3 Top Institutional Trades on My Watchlist
My Wiretap Trade Alerts system is built around special transactions placed by the smart money called “wires.” To find out all about them, you can check out my piece from Wednesday.
And remember, these are institutional traders we’re talking about here… They’re trying to move boatloads of money into the markets as quickly and quietly as possible.
They don’t want anyone else coming in and spoiling their potential paydays.
Well nuts to them, because these wires can be tracked — and I have three of them on my watch list right now.
The first is video game holding company Activision Blizzard Inc. (Nasdaq: ATVI).
The company is down about 28% from its 52-week high as a number of scandals and investigations regarding sexual harassment and an SEC investigation have rocked the company.
And while Activision has certainly had its share of bad press lately, that doesn’t necessarily mean customers have stopped buying its games.
It’s one of the world’s largest gaming and entertainment companies, with franchises ranging from mobile games like Candy Crush to online mainstays like Overwatch, Call of Duty, World of Warcraft and League of Legends.
And right now, traders are coming in and buying the Activision Blizzard Inc. (Nasdaq: ATVI) Dec. 17 $77.5 CALL.
And they’re buying in BIG — dropping a cool $800,000 before lunchtime on Thursday.
The second name the smart money is placing wires on is American mining company Freeport-McMoRan Inc. (NYSE: FCX).
Shares are up 100% from this time last year. Lately, however, with the prices for copper and other metals sliding following fears of the Evergrande crisis, there’s concern over whether these levels will hold.
But institutional traders are buying that blood and picking up calls priced around the current level in the FCX Dec. 21 $33 CALL.
The last company on my Wiretap Trade Alerts watchlist is cosmetics company Coty Inc. (NYSE: COTY).
About a month ago, private equity firm KKR & Co. unwound its massive position, causing shares to trade lower.
And the smart money is paying attention… So far, institutional traders have moved about 50,000 contracts out of the Nov. 19 $9 calls, and into the COTY Nov. 19 $8 CALL.
So while we don’t know what information they’re acting on, we can certainly see some of the top institutional trades being made.
And you can tap into these “Weekend Wiretaps” with me, too. Find out all about it by going here!