We’re Living in a Stock Pickers Market

At Masters in Trading, our focus is to empower traders to find high-probability trades through a repeatable process, with a FOCUS on mitigating risks to optimize returns.

To find trade ideas we use Wall Street Wiretapper, an Unusual Options Activity Scanner powered by AI.

On Friday, our Wiretapper found 6 stocks that exhibited extreme trading behavior.

These 6 stocks have demonstrated the most concentrated Unusual Activity in the market, according to our options scans. When stocks appear on these scans, the unusual options activity is a signal for a potential big move. 

Let’s look at one of those names. Here’s the options chain for FTAI.

Notice the Open Interest on the 18 strike calls, it's 11,512?  

If FTAI trades above $18, those 11,512 calls (once in-the-money) would be the equivalent of long 1,151,200 shares of stock at expiration.  

The underlying stock volume this past Friday was 1,411,099. This is a BIG options position relative to Friday’s daily volume. 

Next, let us look at Masters in Trading’s Volatility Visualizer. This chart shows the stocks expected move for each option cycle going back to last year.  

FTAI has traded within its expected move 91% of the time.

FTAI presents a good trade opportunity because it is trading on the lower end of its expected move, and the data suggest a high probability that FTAI will rally and close within its implied move.

Wall Street Wiretapper Options Scanner also shares the names that are most correlated to FTAI. Those names are GATX, WLFC, and TGH.

Let’s look at how these names have traded relative to one another going back the last 12 months.

FTAI is the weakest, and if correlations hold true, traders should expect FTAI to rally up to its peers.

Trades like these are discussed in Masters in Trading’s Discord Community throughout the week.