There are over 10M accounts over at Robinhood…
Most of those accounts are millennials with little to no trading experience…
It’s what I like to call the “dumb money”
Seriously…
Check this chart out on HTZ…
Source: Robintrack
The purple/pink line is the stock price…
And the green line is the number of accounts that own the stock…
There was a peak of 160K accounts holding HTZ on June 9th.
However, yesterday these headlines flashed through the news wires:
Source: The Fly
The company was asked to delist from the NYSE because it no longer met the financial requirements…
And while HTZ has gone from $0.40 to as high as $6.97…
The “smart money” knew better…
I’m not kidding…
All you had to do was follow the paper trail…
On Monday, June 8th, my Dollar Ace Scanner picked up some rather large and unusual options activity in HTZ.
Check this out…
An options player came in and:
Bought 5000 HTZ Jul $3 Puts
They Spent $1.60 For The Options
A Total Cost of $800K
These very deep out-of-the-money options were bought when the stock was trading at $5.48.
As you know, the lowest a stock can go is $0
In this case, the trader can only make $1.40 tops on it.
And they’re risking $1.60 to put it on…
In other words, they have such a high conviction on the trade…
They’re willing to take it even though the risk vs. reward wasn’t favorable
This trade is still unwinding…
And the story is still developing…
However, if you want to know how to turn information like this…
Into $$$$$ into a trading account…
Then you must read my latest book on options flow.
It shows what “tells” the smart money leaves…
And how to profit off it.