Hey Traders,

One of the reasons I’m so obsessed with unusual volume trades is because it gives me access to tools, intel, and expertise that are typically reserved for hedge funds, banks, and other multi-million or multi-billion dollar trading organizations.

Of course, there is a catch.

While I am able to trade off of Big Money’s resources …

I’m not always privy to what exactly they’re trading off of.

For example, did Big Money know Senator Kyrsten Sinema would cave, and (likely) seal the deal on the Inflation Reduction Act bill currently being floated through Congress?

Well … these trades would certainly suggest so …

ChargePoint Holdings (Ticker: CHPT) has been the target of a LOT of Big Money attention over the last few months …

But it feels like Smart Money has doubled-down in recent weeks … or at least one trader with deep pockets certainly has.

Now, before all this action started, CHPT was already beginning to trend higher, likely thanks to all of the attention surrounding the bill, and its clean energy provisions that could definitely play to the advantage of an EV charging stock like CHPT.

And it looks like one Big Money trader was betting on some upside to come for CHPT …

Perhaps it was the pop on July 28 that inspired this trader to start being a little more active about their trading …

And as you can see, they were willing to cash out on rolling and opening some new positions in CHPT:

I particularly want you to focus on the 90,000 August 5th 15-strike calls …

Because this trade crossed the tape the very next day (Friday), as CHPT dropped 1.2% to close at $15.11:

At first glance, this might look like a large block of bullish call spreads …

But actually, this is the trader rolling their previous 15-strike calls out and up, selling the 15’s for $0.88 (a slight loss from their opening position) and buying the 16’s for $0.46.

But this Big Money trader wasn’t done yet!

Those 16’s were actually rolled down to the 15.5-strike calls on Tuesday:

This trader was long 90,123 of the August 5th 16-strike calls, but they rolled down by selling their 16’s to purchase 60,000 15.5-strike calls for $0.28. 

In sum, this adjustment cost about $0.04 per contract, and is likely the trader adjusting their delta so that if CHPT did manage to rally, they’d be in a good spot to participate.

But we’re still not done yet!

(This is what we mean when we talk about active trade management … this trader isn’t just opening tens of thousands of contracts and then crossing their fingers. They’re carefully monitoring, tweaking, and adjusting to get their contracts and exposure just right.)

Perhaps Congress wasn’t making progress quickly enough (if you can imagine that!) …

Because we started to see some sizable outflows as the trader made yet another adjustment on Wednesday, this time beginning to roll out and up:

On Thursday, the action continued …

This time around, this trader closed out the rest of their long August 5th 15.5-strike calls for $0.49, rolling out and up to the August 12th term, and buying 25,000 of the 16-strike calls for $0.65. 

This continues to give the trader exposure, adding an additional week of time for their anticipated move higher to finally play out.

And on Friday, there was a breakthrough in the legislation …

And CHPT finally managed to close on top of the $16 mark – $16.06 to be precise!

Looks like Big Money was spot on the money …

And let me be clear … there’s no way of knowing whether this was a trader simply predicting the outcome for a piece of legislation …

Or if they had someone on the inside to give them insider insight …

Or if they’re making these trades based on something else entirely.

It’s just interesting timing is all I’m saying.

Want to follow along with even more Big Money trades?

You can do exactly that right here.

Your Only Option,

Mark Sebastian