Trying to make money in the financial markets is tough and uneventful most of the time…a lot of the time you’re just sitting around…trying to generate ideas or wait for something to happen during the week. By Friday afternoon…things start to slow down…and investors and traders start thinking about the weekend and their plans. But believe it or not…some of the best opportunities happen on a Friday…right before the close.

1. Was This
2 Million Dollar Options
Trade Ethical?

2. Trying to make money in the financial
markets is tough and uneventful most of the
time…a lot of the time you’re just sitting
around…trying to generate ideas or wait for
something to happen during the week.
By Friday afternoon…things start to slow
down…and investors and traders start
thinking about the weekend and their plans.

3. This is what actually caught the media’s
attention of myself and OptionSIZZLE in
December 2009, when I provided my private
clients and those that followed me on social
media, a very well timed New York
Community Bank buyer of 8,933 calls to
follow along side them on that Friday and
make very nice profits.

4. Just two hours later, after the market closed
— we all learned just how “timely” those call
options were.
The FDIC announced that New York
Community Bank was taking over most of
the assets in Ohio’s AmTrust Bank, with $12
billion in assets.

5. The lucky investor or investors who bought
the 8,933 options were sitting on a tidy
profit of $800,000-plus — not a bad return
over the weekend.
As to this day, I don’t think those “timely”
trades were ever investigated.

6. The thing is, this kind of activity still occurs
and if you know how to spot it, you can
possible use it to benefit.
A couple of weeks ago I noticed some
activity in B/E Aerospace Inc. (BEAV). It was
the type of options activity that screamed
that something was going to
happen…soon…real soon.

7. Backdrop
On April 30, 2014, I saw 3,206 BEAV May $90
calls get purchased on the offer side for $0.70.
To put this into perspective…at the time, BEAV
traded around 600 option contracts a day.
And on this day there were over 5,100 options
traded….over 4,600 of them being calls. The
stock was trading around $87.77 a share.

8. That’s over 8x usual options volume!
Hello BEAV…you’re the newest member of
my watch list.

9. Fast-Forward Two Days
On Friday, May 2, 2014…I start to see a flurry of
calling buying in BEAV…right before the close.
And yes…the May $90 calls were the soup du
jour.
3:48 pm eastern time: a sweep was detected…a
buyer came in and bought around 1,000 May
$90 calls for $1.05

10. But believe it or not…some of the best
opportunities happen on a Friday…right
before the close.
It’s almost like well informed investors are
thinking…let’s sneak these orders in…while
everyone is daydreaming about the
weekend.

11. 3:50 pm eastern time: close to 120 contracts
are bought for $1.15
3:51 pm eastern time: 186 contracts bought
for $1.20
3:52 pm eastern time: around 190 contracts
are bought for $1.25
3:57 pm eastern time: 238 contracts are
bought for $1.50

12. Good for 3x usual options volume for the day.
Now, even if you’re not following the news on
this company (and I wasn’t at the time)…you
would have to think something is brewing.

13. Why was this so interesting?
As noted, there was a massive buyer on
Wed, April 30th…those options that were
bought for $0.70 doubled by Friday.
The stock is trading at $88.96…with two
weeks till expiration.

14. As you know, these are OTM options…and as
we get closer to expiration, time decay will
start sucking out the premium of these
options.
So we have a trader who is long a boatload
of May $90 calls…with ZERO intrinsic
value…and sitting on massive profits.

15. Instead of taking profits…we see a flurry of
aggressive buying heading into the close.
How aggressive?
Well, 96% of the options traded on the May $90
call strikes were “lifting offers.” This means that
the traders were willing to pay the ask price on
96% of the contracts traded on that strike.

16. Lucky Guess?
On Sunday, May 4, 2014, BEAV announced
that they engaged in the process of
exploring “strategic alternatives.”
When Monday rolled around, the stock
traded north of $98 per share at one point
during the day.

17. It makes sense that the trader wasn’t happy
with a double…those options they bought
on Wednesday for $0.70 were trading north
of $9.00!

18. For those counting score at home:
That’s $9.00 – $0.70= $8.30
8.30 x 3,206 = 26,609.80
26,609.80 x 100 (each contract leverages
100 shares) = $2,660,980 profit

19. Some of you might be thinking…no one is that
good…that they had to of been tipped off.
Again, that’s not my concern…that’s up to the
regulators to decide.
Just like pilot fish do….. with swimming along
side the sharks…we have the privilege of
participating in the same trades.

20. Because every order that is placed on the
exchange…must be reported.
I’ve been watching this type of order flow for
many years…and I’d like to think that I’m
pretty good at picking out needles in a
haystack.

21. If you’d like to learn more about my process,
make sure to pick up my Free Report, that
will show you how you can uncover Wall
Street’s most lucrative and well timed
trades, right now!
I think you’ll really like it.

22. What do you guys and gals think…was this
trader tipped off or were they just good at
what they do?
I’ll be hanging out in the comments section
below to hear your thoughts.

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