Issue 44: Marijuana Stocks Overwhelm Unusual Options Activity Scanner – Masters In Trading

Marijuana Stocks Overwhelm Unusual Options Activity Scanner

Welcome to Issue 044 of Masters in Trading Digest.

In today’s issue of the Digest we highlight Unusual Trading Activity, not in an individual stock, but instead, the “smart money” attacks an entire sector.

Which begs the question, what the heck is happening with Cannabis stocks this week?

This will be an excellent week for us, I can feel it!

Enjoy,
Jonathan

Legislation to Legalize Marijuana

This week, legislation to legalize marijuana at the federal level will be teed up for a house floor vote.

That’s why we’re seeing crazy options activity in Weed Stocks.

The image below is from Wall Street Wiretapper, our unusual options activity scanner.

The scan shown above has sifted through all available option contracts and is trained to only share symbols that meet a very strict threshold.  

For this reason, notice how there are not an equal number of results found on each date?  The scan is programmed to broadcast only those names that we consider to be highly unusual trading behavior.  The weirdest of the weird options trades.  That is what we are searching for.

When an entire sector overwhelms the options scanner, that’s the equivalent of seeing plumes of smoke before catching a glimpse of the flame.

Cannabis stocks will “most likely” trade higher this week IMO.

Last week we saw something similar with China stocks: $BABA, $FXI, and $YANG.

$BABA showed up on the Wiretapper on March 14th, and on March 23rd the stock was trading 80% higher.

The Options Scanner is used to anticipate big news which causes sharp stock movements.  After seeing Chinese Stocks on the Wiretapper, we then learned that “Alibaba and other Chinese Stocks Could Get Delisted.”

Masters in Trading Digest - Issue 44

Share this post:

Get MIT Digest!

Want FREE actionable trading tips and strategies like the ones you see here 3 times per week?

We're now accepting sign-ups, FREE for a limited time. Register below to join the Digest.

Unsubscribe at any time! Your email address will be used to send you Masters in Trading DIGEST issues.

HEARD ON OUR BLOG

Stacy Brovitz examines why There’s More to Volatility Measures Than Just the Vix in his latest post.

HEARD IN OUR DISCORD

Pot Stocks!

FINAL THOUGHTS

WHAT TO EXPECT IN THE NEXT MIT DIGEST

I am curious to see how the Cannabis stocks act this week after the onslaught of activity on the Wall Street Wiretapper.  Smart Money is supposed to see things first, so will weed stocks pump this week?  

We’re betting = YES.

Keep your feedback coming into support@mastersintrading.com.  We’re excited to share your feedback along with fantastic suggestions for upcoming issues.

Until then, trade smart and always manage your tail-risk.

Thanks for reading,
Jonathan Rose

Get Masters in Trading Digest FREE!

Want FREE actionable trading tips and strategies like the ones you see here 3 times per week?

We're now accepting sign-ups, FREE for a limited time. Register below to join the Digest.





 






Unsubscribe at any time! Your email address will be used to send you Masters in Trading DIGEST issues.