On the last day of the year, we didn't see much going on in the market, but a few names did see some unusual option activity.
LSI Corporation (LSI) April 7.50 calls saw 1,011 contracts trade on the offer side of the market exceeding the current open interest. Prices on (LSI) are creating a technical bull flag under resistance and with the action in calls and the technical set up this will be a name I will keep an eye out for.
Con-way Inc. (CNW) hit my system on Thursday with larger than normal put interest. Taking a look at the daily chart at the time didn't show that these trades where based on a technical aspect. On Friday, prices sold off sharply closing down 3.80% and raising a red flag on those that were buying puts ahead of Friday's news.
My twitter is becoming one of the most valuable streams on stocktwits, many followers are spreading the word creating amazing word of mouth growth and very good testimonials from those who have been able to make some amazing trades using our updates on stocks seeing unusual activity. On Thursday, I posted a tweet on our @optionsizzle on Kongzhong Corp. (KONG)
I took this as a day trade and took it as a loss on Thursday, but a few of our members and twitter followers were able use what I teach and follow the "smart money traders" into a swing trade and were able to make a decent amount on Friday's pop.
On yesterday's market and option video, I talked about the technical set up in Apple Inc. (AAPL), I look into it a little more in depth and what I would be looking for to jump into this trade.
Disclosure: No positions
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.