Have you picked up on the latest trend in the stock market?
It’s buying up zombie companies…
More specifically, stocks that have announced bankruptcies…
For example:
Hertz (HTZ) is up over 521% over the last week since filing for bankruptcy…
JCPenney (JCPNQ) announced its bankruptcy on May 15th…
However, the stock soared by 95% yesterday…
But let me tell you about one of the wildest trades I’ve seen in recent memory…
And why it’s so critical you pay attention to what the smart money is doing…
Rumors have been circulating that Chesapeake Energy (CHK) would be filing for bankruptcy…
Less than a month ago an analyst firm CFRA, gave the stock a $0 price target.
However, that didn’t stop one options player from slapping some serious size on CHK call options…
On Wednesday, June 3rd
They Bought 1000 CHK
July $15 Calls for $2.11
Now, if you do the math… that’s more than $200K in options premium. At the time of the trade, the stock was trading at $12.91.
Not only did this player believe CHK wasn’t going bankrupt… but they thought it was going to trade higher…
Fast forward to Monday’s trading session…
That $211K bet was worth more than $6M at one point during the day…
And you know what?
That’s not the only trade I’ve seen that’s popped off…
In fact, I see a handful of them every single trading day…
The key is tying the catalyst to the options activity.
That’s why I’ve written this brand new eBook.
It explains how institutions and hedge funds use options to make big money…
And how you can shadow them.
If you’re struggling to come up with your own trade ideas…
Then it’s a must read.