Perfection Since March 2013

Wall Street Wiretapper, our Unusual Options Activity tool, is optimized to find stocks with an increase in weird trading activity.

At times, not only do we see Unusual Options Activity in a singular company, but we also find those entire sectors show up on the Options Scanner daily.

That’s the smoke. Where’s the fire? After seeing Uranium names dominate the front page of Wall Street Wiretapper on September 10th, 2021, we tweeted our love for yellow cake.

When sectors come into play it’s best to follow the names as one single unit. Often, one of the names will outperform others, so traders can switch between the stocks that are performers and ones that are underperformers.

That’s what Cory does above. Notice how $CCJ is outperforming $LEU? This is easy – just sell the name that’s outperforming and buy the laggard.

Tom and Stacy are making a similar move. In the chart above, notice how $URA outperforms $LEU? Since both of these names have a strong correlation, because they are dependent on the price of Uranium, they can easily be traded as a pair.

Summary:  Focus on the industry and then drill down to individual companies.