Hey Traders,
We talk about Big Money a lot around here.
And there’s a reason for that.
Following Big Money is how I find some of my best wins.
But which Big Money trades do I follow, exactly?
Well, let’s take a look.
This Big Money trade is an excellent example of what I look for when I’m trying to spot tradeable money flows in the market.
Here’s a Big Money trade I saw, I liked, and I copied …
Cashing In Their $12 Million Chip
Ovintiv Inc. (Ticker: OVV) is one of the largest producers of oil and natural gas in North America, so it shouldn’t be shocking that the shares have reaped the benefits of ballooning oil prices for the past few months.
The oil stock has steadily tracked higher since December, jumping more than 83% from its December low of $29.30 to last Friday’s high of $55.44.
This week saw OVV temper its recent gains during the first two trading days of the week, closing on Tuesday down 0.9% at $53.38.
That’s not too surprising, considering the same two days saw oil prices take a hit …
Does this mean the “energy crisis” is almost over?
I don’t believe so … and Big Money doesn’t seem to think so, either.
In fact, Big Money seems to be growing even more bullish on OVV, and they’re not afraid to show it …
This trader is closing and rolling an existing block of 16,720 April 45-strike calls, selling them to close at $7.50, or a total of $12,540,000.
Now, that’s a nice chunk of change …
From the looks of it, this trader has been sitting on these April-dated calls for quite some time, so we know they made a fair bit of profit off of them …
And a Big Money trader who is RIGHT is a Big Money trader I want to pay attention to!
At the same time they closed out their huge block of April calls, they actually levered up by purchasing 22,210 contracts of the May 55-strike calls for $3.60, or a total of $7,995,600.
So this is a “trader” who has significant means … and we can assume they aren’t blindly making these trades.
There’s probably a reason they’re going so hard on OVV.
We also know that they were willing to cash out on OVV once …
And they’re doing it again, looking for even more upside to come.
The best part?
They were RIGHT the first time around … so whatever they’re doing is working.
Now THAT sounds like a trade I want a piece of for myself …
And when we spotted this trade during my Big Money Flow Show on Tuesday, I was more than happy to hop on board.
In fact, while I did like this trader’s call-buy outright (the 55-strike calls were trading at quite a good value on Tuesday), I liked a few alternative trades as well …
But … you had to be there (or watch the members-only trade video!) to get them!
Don’t want to miss out on the next one?
Your Only Option,
Mark Sebastian