Does somebody know something once again? We use unusual option activity to identify possible entry signals. It works best with stocks that typically have low volume and low open interest. Why? It almost becomes a self-fulfilling proposition. The assymetrical order-flow overwhelms the market and with the market makers with nowhere to hedge their position, they have no choice but to follow the flow. Just like earlier with FCEL. Today we are looking at Center Point Energy (CNP). CNP is a domestic energy delivery company. The Company’s business segments include: electric transmission and distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services. Does somebody think they know something about the Keystone XL Pipeline? Over the past 5 trading days a customer has been buying large lots of May 25 Calls and selling May 22.5 Puts putting together a synthetic long position in the underlying. Today they bought over 18,000 of the calls. Also, there were two key technical resistance levels were blown through. It broke out of the Ichimoku Cloud to the upside and took out the 200 Day MA. Both of these are very bullish technical indicators. This combined with the UOA gave us our signal to get long the May 25 Calls.
The post Trading Advantage Options – Alternative Energy appeared first on Trading Advantage Daily.