Issue 6: The Most Unusual Activity in December 2021 - Masters in Trading Digest

The Most Unusual Activity in December 2021

Welcome to Issue 006 of the Masters in Trading Digest.

This is my favorite time of year. I get to relax a little and spend time with my wife and kids.

It keeps it all clear for me – why I do what I do. I hope you have a wonderful time as well. 

Unplug and enjoy. I know we will. 

We'll be back sharing member trades, and continue live classes on Monday, January 3.

In today’s Digest, we discuss the role of the market maker and why these guys never want to guess on a stock’s direction.  It is important to understand that market makers are valuing option contracts based on volatility.  They do not guess which way a stock moves.

Next, we talk about $PLAY – the name with the most unusual options activity in December of 2021.

Then, our coaching clients got another ‘airdrop’!  How’d they do it?  Easy, participate in Web3.0.  This new world pays you to use their dAPPS!

Good investing,



In the last few weeks, this topic has come up a lot in our private community on discord so I wanted to share this post, How a Professional Market Maker Values Stock Options from the Masters in Trading Insights here as well.


The Most Unusual Options in December 2021: $PLAY

As a former market maker I am always looking for stocks with Unusual Options Activity.  

The stock that clearly has some ‘wonky’ behavior in December is $PLAY.

Our Unusual Options Activity Scanner: Wall Street Wiretapper finds stocks with the highest probability of outperforming the markets priced in volatility. Overtime, the tool continues to improve because it is backed by a neural network, a form of Artificial Intelligence that audits and constantly improves the scanner’s findings over time.

$PLAY shows up December 6th, December 7th and then again December 8th.

Notice the Options Volume 20D Avg, and then notice the Volume for each day in December.  The sudden increase in options activity is a sign that ‘smart money’ must know something because that is a substantial bet on one stock.

Take a step back and think using common sense.  

Why would someone make such an aggressive bet on one stock?  Let me help, because (most likely) they’ve done their homework and have found EDGE in the trade.  

How do we know this?  Because traders who manage BIG money in Hedge Funds have the resources to find great trading opportunities. It behooves the retail trader to follow these BIG trades. Luckily for us, the options market is transparent and one can easily learn how to follow this information.

Heck, market makers price options because of this Unusual Trading activity.

Now let’s look at another proprietary trading tool, High-Value Target (HVT), that Pablo Lucena built (pictured below).

On December 7th, the HVT tool gives us a green arrow, a BUY signal.  The green arrow shows up because $PLAY traded outside a 4 standard deviation band and then back in. The buy signal is showing a potential area of massive support.

Watch a 10-minute demo video of the High-Value Target Tool

The HVT tool is one of those tools that we use before risking money in any trade.  This tool keeps traders on the ‘edges’ – meaning, we strongly want our clients to consider not risking money in trades until they get confirmation using the buy and sell signals.

This is forced discipline for trades because it keeps them only trading on the ‘edges’.


Another AIRDROP for anyone who has transacted on Opensea in 2021. is the ‘EBay’ of Web 3.0. It is a Decentralized Application.

These dAPP’s will actually pay you to use their service.

What is a dAPP?

dAPPs (decentralized applications) are digital programs that operate on the blockchain, which essentially means they aren't running on a singular computer. dAPPs operate independently from the control of any single authority. You'll most commonly find that dAPPs are built on the Ethereum platform. dAPP applications span a variety of purposes – including finance, social applications and gaming.

How’s that for a Christmas gift?  I woke up to a free $4,438 in my digital wallet just for being an active user in  Congrats to all our Coaching clients and Coin Traders who received this exciting Christmas present.



Simple really, Gamma Scalping is trading the underlying stock around an options position.

When traders are long options, they are faced with Theta Decay as a risk to holding that option.  Theta decay is the risk of time passing before your option moves “in-the-money.”

The opposite of Theta = Gamma… cool, huh?

Traders learn to Scalp Gamma to make back the lost Theta when holding a long options position.

Watch this Video, Gamma Scalping and the 3 Ways to Manage an Options Position

“Position Management Gold” – is how Pete R describes this video 



The next issue of the MIT Digest will be released Wednesday, December 29, 2021.

Wednesday’s issue will reflect on some of the biggest market movers of 2021, and what we should prepare for in 2022.

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

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

Have a wonderful holiday season.

Thanks for reading,
Jonathan Rose


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Masters in Trading Digest - Issue 6

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