Why Such an Unusual Trade Before IOVA Drops 54.5%
Welcome to Issue 070 of Masters in Trading Digest.
When I was a market maker on the Chicago Board Options Exchange (CBOE), a veteran trader once said to me:
“Jonathan, it won’t take you long to see something that’s so Unusual that someone should go to jail for cheating.”
In the first section of today’s Digest, we may have caught the perp.
The second session brings a smile to our faces that stretches from ear to ear. Congratulations Tom T! You deserve all the good fortune that has come your way.
Enjoy the Digest.
UNUSUAL OPTIONS ACTIVITY
Shares of Iovance Biotherapeutics Inc. IOVA, -54.20% tumbled over 50% today.
The company had announced new clinical data for its experimental melanoma drug, including a 29% objective response rate in one cohort of patients. In that cohort, there were three complete responses and 22 partial responses, and the median duration of response was 10.4 months. – MarketWatch
Whenever you come across a stock that gets chopped in half, like IOVA, check the options activity and see if you spot anything unusual.
That’s what I did in $IOVA using our AI-powered unusual options activity scanner, Wall Street Wiretapper.
$IOVA shows up 2x in our main scan, coincidentally the last time the stocks showed up was yesterday. (good timing!)
Here’s another scan that alerts us when stocks trade in %tile of its IV high.
Wall Street Wiretapper was built to focus on the sole mission of finding stocks with a high probability of outperforming the market's implied volatility. Said another way…
Wiretapper finds stocks that are about to make crazy moves; like IOVA.
In blue, you’ll find labels to each of the days Wiretapper alerted us in the OVERVALUED scan shared above.
Wiretapper was calling out, “Hey, IOVA is about to make a big move!”
If Only Every Morning Can Be Like This
Tom is leaving his job in the tech industry to become a full-time trader in options, futures and Web 3.0.
I remember when he discussed this with Cory back in March.
Congratulations Tom. IMO, it’s your strong sense of ambition and curiosity that lead you to succeed. Keep at it! Excited to sit on a (virtual) desk with you for years to come.
A month back I interviewed Tom. You can listen to the full 30-minute interview and get the backstory to his success.
Masters in Trading Digest - Issue 70
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FINAL THOUGHTS
WHAT TO EXPECT IN THE NEXT MIT DIGEST
We will not have a MIT Digest this Monday because of Memorial Day.
You can expect the next MIT Digest June 1, 2022.
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
P.S. Memorial Day Sale is here. Annual passes are now available for our most popular memberships – Options, Futures and Web 3.0.
- Monday Live Brief
- Access Options Discord
- Wall Street Wiretapper Web-Based UOA Scanner
- Special Member Perks
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