Skip to content

Velocity Trader

Over the 64 trades in the model portfolio – 71.88% were profitable.

Velocity Trader

Kyle Dennis “Smart Money” Moves

Kyle Dennis likes to follow the “smart money” and try to figure out where they’re placing their bets. Right now, he thinks the elite traders are looking for a massive runup in GameStop (GME) and he wants to show you how he uncovered this trade idea.

Contents

  • 1 Kyle Dennis “Smart Money” Moves – Is GME Set For A Massive Short Squeeze?
  • 2 Kyle Dennis “Smart Money” Moves – The “Smart Money’s” Moves In GME
  • 3 Kyle Dennis “Smart Money” Moves – Call Buyers Step Into GME
  • 4 Kyle Dennis “Smart Money” Moves – Is GME Set For A Massive Short Squeeze?
  • 5 Kyle Dennis “Smart Money” Moves – Dollar Ace Strategy

Kyle Dennis “Smart Money” Moves – Is GME Set For A Massive Short Squeeze?

The market has been all over the place today, stocks went from green to red — led by tech shares and volatile oil prices. However, when it comes to finding potentially high-probability setups, I don’t necessarily care about what the overall market is doing.

Instead,  I like to follow the “smart money” and try to figure out where they’re placing their bets.

Right now, I think the elite traders are looking for a massive runup in GameStop (GME) and I want to show you how I uncovered this trade idea.

When I actually spotted the play in GME, I actually noticed something very interesting about the stock…

It’s got a massive short interest, and the figure is mind-boggling.

So can GME be setting up for a massive short squeeze?

Kyle Dennis “Smart Money” Moves – The “Smart Money’s” Moves In GME

A once-popular video game store, GME sells used and new video games, gaming consoles, and other electronics.

While the gaming sector is on the rise, GME hasn’t been able to adapt as more and more gamers are purchasing video games via digital download.

In late 2013, GME’s shares were trading in the 50s, and with the shift in the landscape of the industry… the stock is now trading around $5 a share.

You’d think GME would be left for dead and get no love from the market, right?

However, GameStop has gotten some recent buzz over the last year.

In late 2019, Michael Burry’s hedge fund bought 3% of GME. In fact, it’s his largest position in the fund, allocating 17.3% in GME. 

If you don’t already know, Burry was made famous in the movie the Big Short, his character was played by Christian Bale. He earned $700M for investors on the subprime mortgage collapse — and $100M for himself.

Someone I would definitely call  “smart money.” However, Burry’s position is not why I’m writing about GME today — that’s just icing on the cake.

Kyle Dennis “Smart Money” Moves – Call Buyers Step Into GME

The reason is I saw some massive call buyers step into the name on Monday.

On an average day, GME will see about 8,100 call options trade.

However, by 2:30 PM ET on Monday, there were already 27,767 contracts traded. That was more than 3 times the activity GME sees on a typical day.

Mind you, this is when the stock was already up 18.45% on the day (it finished the day higher by 22%).

Here is some of the action I saw that caught my eye:

  • 1045 contracts of the May $7.5 calls bought
  • 5629 contracts of the July $5 calls traded

Of course, when it comes to these “smart money” trades… I don’t follow blindly and I conduct my due diligence.

Kyle Dennis “Smart Money” Moves – Is GME Set For A Massive Short Squeeze?

Last time I checked the short interest in GME was abnormally high.

To be honest with you, I can’t find the right figure — all I know is that the short interest is at extreme levels. According to Finviz, the short float is 99%…while Morningstar states there are 58.84M shares short, while the float sits at about 56M shares.

What that means is GME one of the most hated stocks on Wall Street.

I know what you’re probably wondering, “Kyle, why does the short interest matter?”

Well, the short interest tells us the majority of shares available to trade have been sold short. Typically, we don’t see the short float near 100% and this is a unique phenomenon.

What I think happened here is that those who owned the shares lent them to short sellers to bet against the stock. Those shares may have been borrowed from one broke and sold to another broker, and the second broker lent those shares to their clients.

In turn, this action caused the short interest to remain at astronomically high levels. This rarely happens, and to me, it’s unprecedented.

When it comes to high short interest, any type of positive news should cause a rip your face off rally.

For example, yesterday, activist firm Hestia Capital Partners, which has a 7.2% stake in GME, announced plans to push the GME’s board to make more changes to increase shareholder value.

That announcement on Monday is why I believe the stock rallied and finished higher by 22%.

Could the options trader be playing an “unknown” catalyst right now?

Only time will tell…

Kyle Dennis “Smart Money” Moves – Dollar Ace Strategy

Now, I haven’t made a move on GME yet, but it’s on my radar… despite the pullback on Tuesday. I’ll continue to stalk my scanner for more options action in the symbol.

You see, when you’re able to decipher what the smart money is doing, you can follow along and profit alongside them.

That’s what my Dollar Ace Strategy  is all about.

I believe there are opportunities like this one riddled throughout the market,

All I need to do is know where to look.

If you’re wondering where you can pick up these valuable skills—it’s simple… just check out my Dollar Ace Masterclass and you’ll get an inside look at how I uncover these “smart money” trading opportunities.

[Ed.note: Kyle Dennis runs BiotechBreakouts.com. He is an event-based trader, who prefers low-priced and small-cap biotech stocks.

To learn more HUNT DOWN $1 OPTION CONTRACTS POISED FOR HUGE GAINS and download his FREE “DOLLAR OPTION TRADER” Playbook here!

Source: Biotechbreakouts.com | Original Link

Author John GladstonPosted on April 28, 2020Categories Kyle Dennis Biotech BreakoutsTags Dollar Ace, Dollar Ace Review, Dollar Ace Reviews, Dollar Ace Scam, Kyle Dennis Dollar Ace, Kyle Dennis Dollar Ace Complaints, Kyle Dennis Dollar Ace Fraud, Kyle Dennis Dollar Ace Login, Kyle Dennis Dollar Ace Past Performance, Kyle Dennis Dollar Ace Picks, Kyle Dennis Dollar Ace Price, Kyle Dennis Dollar Ace Program, Kyle Dennis Dollar Ace Program Review, Kyle Dennis Dollar Ace Program Reviews, Kyle Dennis Dollar Ace Program Scam, Kyle Dennis Dollar Ace Refund, Kyle Dennis Dollar Ace Results, Kyle Dennis Dollar Ace Review, Kyle Dennis Dollar Ace Reviews, Kyle Dennis Dollar Ace Scam, Kyle Dennis Dollar Ace Strategy, Kyle Dennis Dollar Ace Strategy Review, Kyle Dennis Dollar Ace Strategy Scam, Kyle Dennis Dollar Ace Trades, Kyle Dennis Dollar Ace Website, Kyle Dennis Results, Kyle Dennis review, Kyle Dennis Reviews, Kyle Dennis scam, Kyle Dennis Trading Results

Post navigation

Previous Previous post: Jeff Bishop’s Total Alpha Options Masterclass: Is Gold About To Blow Up Like Oil?
Next Next post: Alexander Green’s The Oxford Communiqué: Ultra Cheap $3 Stock Retirement Plan
Velocity Trader > Kyle Dennis Biotech Breakouts > Kyle Dennis “Smart Money” Moves

Tags

  • charts
  • Dow Jones
  • ETFs
  • GS
  • Jeff Bishop Review
  • learn to trade options
  • markets
  • NASDAQ
  • Option Rocket Kyle Dennis
  • Option Rocket Review
  • Option Rocket Reviews
  • Option Rocket Scam
  • options
  • Options Rocket Kyle Dennis
  • Options Rocket login
  • Options Rocket Review
  • Options Rocket Reviews
  • Options Rocket Scam
  • Options Rocket User experience
  • Options Rocket user review
  • Options Rocket webinar
  • Options Rocket website
  • options trading
  • options trading newsletter
  • options trading strategies
  • options trading tips
  • options trading webinar
  • option trading
  • option trading strategy
  • Russell
  • S&P
  • SPX
  • SPY
  • squeeze
  • strategies
  • trading
  • understanding options trading
  • VIX
  • Weekly Money Multiplier
  • Weekly Money Multiplier login
  • Weekly Money Multiplier Real User Review
  • Weekly Money Multiplier Review
  • Weekly Money Multiplier Reviews
  • Weekly Money Multiplier Scam
  • Weekly Money Multiplier User Experience

Elon Musk SAV

Warrants

One Percenter

Buy This One Stock in 2021

Recent Posts

  • How to Buy Back 20 Years of Your Life: Teeka Tiwari’s “Anomaly Window” Webinar
  • Dave Forest Warrants Master Course: The Best-Kept Secret to Grow and Protect Your Portfolio
  • Jeff Brown’s Last Digital Leap: 3 Keys to Pre-IPO Success
  • Teeka Tiwari Crypto’s Next Trillion Dollar Coin Leaked: Scam Or Real Thing?
  • James Altucher 5-Days To $500 Instant Income Challenge: How to collect $500 in instant income?

Top 7 Trading Resources

Best Trading Advice

Steady Income Investments

Crypto News

Options Trading Strategies

Top Marijuana Stocks

FREE Trade Alerts

Best Blockchain Stocks to Buy

Velocity Trader Proudly powered by WordPress
[i]
[i]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[i]
[i]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[i]
[i]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[i]
[i]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[i]
[i]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[i]
[i]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[i]
[i]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[i]
[i]
[index]
[index]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[523.251,659.255,783.991]
[i]
[i]