Insider Options Trading (IOT) many times is a ‘tell’, a signal that there is a likelihood of a potential large move in the underlying stock. This informed activity is usually initiated by hedge funds and institutional traders. These insiders will use the options market to make very large bets to profit on the leverage that options provide. Frequently they will use the options market to pre-position in advance of an impending news announcement, such as a takeover, that may not be public knowledge.
Hedge funds are using options to a greater degree on a daily basis. Famed hedge fund manager Carl Icahn used options, not stock, to take his large positions in Netflix and Herbalife. Bill Ackman of Pershing Square, the noted adversary of Mr. Icahn, used mostly options to take a very big stake in Target Stores stock.
So our goal is to uncover what the big players are doing and follow along with them in the most profitable manner possible. It requires knowledge, skill and diligence, but the payoff can be enormous.
For those unfamiliar with listed options, they’re classified as either calls or puts. A call gives you the right to buy stock (usually 100 shares), while puts give you the right to sell stock. A call buyer would be taking a bullish stance, while a put buyer would be taking a bearish stance.
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Hedge funds are using options to a greater degree on a daily basis. Famed hedge fund manager Carl Icahn used options, not stock, to take his large positions in Netflix and Herbalife. Bill Ackman of Pershing Square, the noted adversary of Mr. Icahn, used mostly options to take a very big stake in Target Stores stock.
So our goal is to uncover what the big players are doing and follow along with them in the most profitable manner possible. It requires knowledge, skill and diligence, but the payoff can be enormous.
For those unfamiliar with listed options, they’re classified as either calls or puts. A call gives you the right to buy stock (usually 100 shares), while puts give you the right to sell stock. A call buyer would be taking a bullish stance, while a put buyer would be taking a bearish stance.
For More Information Visit:

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