See Little John Flow Inside

I did a Little John trade today capitalizing on “Robinhooders,” and showed everyone live my exact system, analysis, and process that I’ve been using to make FAST money with the brand new edge in these markets. Trades still live and you can still grab it here.

We all know the Robinhood traders love Tesla. Heck EVERYONE loves Tesla stock!

Younger investors love ESG investments, because by owning First Solar,  they feel like they are helping the environment (debatable).

Thus,  one should not be surprised that a name that I am looking to pop is seeing the type of bullish action that WREAKS of Robinhood investors:

$NIO

Take a look at the call action occurring in NIO on options that expire on Friday.

There are trades that are opening and rolling and opening and rolling all day.

Most of the trades were executed in small lots,  at first… then big money jumped in to buy more.

This causes implied volatility to go up.

Implied volatility going up,  causes delta of out of the money options to explode.

This causes the amount of stock market makers need to purchase to hedge to explode.

This pushes the stock higher.

Which increases excitement.

We call this the Robinhood Feedback Loop.

Its real… and it is why we built Little John.

Our small order tracker looks for the beginning of these feedback loops caused by Robin Hood (get it – Little John).

You can see the replay of me using it here.

Your Only Option,

Mark

P.S. – You can see the replay of me using Little John here…

Mark Sebastian

Mark Sebastian

Mark Sebastian is a former member of both the Chicago Board Options Exchange (CBOE) and the American Stock Exchange (AMEX), where he spent years mastering the art of options trading in the most competitive environment imaginable. As Chief Investment Officer at the hedge fund Karman Line Capital, Mark manages sophisticated options strategies for institutional clients. He is the author of two highly regarded books on options trading: ‘The Option Traders Hedge Fund’ and ‘Trading Options for Edge.’ Mark is a frequent guest on major financial networks including CNBC, Fox Business News, Bloomberg, and First Business News, where he provides expert commentary on market volatility and options strategies.

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About the Author

Mark Sebastian

Mark Sebastian

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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