Core Insights - The article discusses the long call butterfly strategy, which is used by traders who believe a stock will not experience significant price movement between the initiation of the trade and its expiration [1][5]. Long Call Butterfly Strategy - A long call butterfly is constructed by buying an in-the-money call, selling two at-the-money calls, and buying an out-of-the-money call, resulting in a net debit that represents the maximum possible loss [1]. - The maximum profit is calculated as the difference between the short and long calls minus the premium paid for the spread [2]. Trade Examples - **Tesla (TSLA)**: - Trade involves buying a $350 strike call, selling two $425 strike calls, and buying one $500 strike call. - Cost: $5,400 (maximum loss), Maximum gain: $2,100, Lower breakeven: $404, Upper breakeven: $446, Risk/Reward Ratio: 2.57 to 1, Profit Probability: 55.6% [3][4]. - **AMD**: - Trade involves buying a $165 strike call, selling two $212.50 strike calls, and buying one $260 strike call. - Cost: $3,390 (maximum loss), Maximum gain: $1,360, Lower breakeven: $198.90, Upper breakeven: $226.10, Risk/Reward Ratio: 2.49 to 1, Profit Probability: 53.7% [7][8]. - **Nvidia (NVDA)**: - Further examples of long call butterfly trades on Nvidia are mentioned, indicating similar strategies and risk profiles [9]. Market Sentiment - The Barchart Technical Opinion rating for Tesla is an 8% Buy with a weak short-term outlook on maintaining the current direction [6]. - The Barchart Technical Opinion rating for AMD is a 40% Buy with a weak short-term outlook on maintaining the current direction [8].

Investment Strategy - The investment strategy focuses on bullish positions in 4-5 industries, particularly in IT (hardware and software) [1] - The approach is termed "Fundamental Options," combining fundamental analysis with options trading [1] - Various investment strategies are employed, including income-oriented investments in BDCs and utilities, growth at a reasonable price in tech, deep value based on discounted cash flow, and dividend aristocrats [1] Options Trading - The company utilizes 20-25 different options strategies for purposes such as hedging stocks, bullish substitutes, neutral trades, trading volatility, and earnings-related trades [1] Teaching and Education - There is a passion for teaching, with experience in formal and informal education, including authoring a free local investing newsletter [1]

Group 1 - High-rolling investors are bullish on Alcoa, with significant options trading activity indicating potential privileged information [1] - The sentiment among major traders is mixed, with 44% bullish and 38% bearish, highlighting a strong preference for calls over puts [2] - Significant investors are targeting a price range for Alcoa between $17.5 and $75.0 over the past three months [3] Group 2 - Analyzing volume and open interest in options trading provides insights into liquidity and investor interest in Alcoa's options [4] - Recent trading volume for Alcoa stands at 4,721,192, with the stock price at $62.1, reflecting a slight decrease of -0.1% [8] - Analysts have set an average price target of $66.33 for Alcoa, with some revisions indicating a target of $64 from multiple analysts [6][8]

Group 1: Market Activity - Financial giants have shown a bullish sentiment towards First Majestic Silver, with 50% of traders being bullish and 40% bearish in recent options trading [1] - The trading activity indicates significant investors are targeting a price range for First Majestic Silver between $5.0 and $41.0 over the past three months [2] - The trading volume for First Majestic Silver stands at 10,047,708, with the stock price currently at $23.39, reflecting a decrease of -0.17% [7] Group 2: Options Trading Insights - A total of 44 unusual options trades were identified for First Majestic Silver, with 37 calls valued at $3,395,363 and 7 puts valued at $318,018 [1] - The analysis of volume and open interest provides insights into the liquidity and interest in First Majestic Silver's options within the strike price range of $5.0 to $41.0 over the last 30 days [3] - Recent options trading patterns suggest a focus on the company's current market position and performance [5] Group 3: Analyst Opinions - Two professional analysts have provided insights on First Majestic Silver, with an average price target set at $23.75 [5] - An analyst from Scotiabank maintains a Sector Perform rating with a target price of $23, while another from HC Wainwright & Co. holds a Buy rating with a target price of $24 [7]

NFLX is on Senior Quantitative Analyst Rocky White's equities that have attracted the highest options volume in the past two weeksNetflix Inc (NASDAQ:NFLX) stock has been mired in an extended pullback, which wasn't helped by a post-earnings drop on Jan. 21. The 20-day moving average has helped guide NFLX lower since the beginning of December, though the shares now appear to be consolidating above the $80 level -- a potential level of support for this pullback. Options traders have been targeting the streami ...

Core Insights - Deep-pocketed investors have adopted a bearish stance towards Dell Technologies, indicating potential significant market movements ahead [1] - The options activity shows a divided sentiment among investors, with 20% bullish and 70% bearish, highlighting a notable shift in market perception [2] Options Activity - Recent tracking revealed 10 extraordinary options activities for Dell Technologies, with puts totaling $409,106 and calls amounting to $221,201, suggesting a strong bearish sentiment [2] - The expected price range for Dell Technologies over the last three months is between $115.0 and $145.0, indicating where significant investors anticipate price movements [3] Volume and Open Interest - Analyzing the volume and open interest of options can provide insights into liquidity and investor interest, particularly for strike prices between $115.0 and $145.0 over the past 30 days [4] Current Market Position - Dell Technologies has a trading volume of 1,861,462, with its stock price currently at $121.0, reflecting a slight decrease of -0.04% [7] - The average target price from four experts is set at $147.25, indicating a potential upside from the current trading price [5]

Group 1 - Investors are taking a bullish stance on United Airlines Holdings, with significant options trades indicating potential insider knowledge of upcoming events [1] - The sentiment among big-money traders is mixed, with 48% bullish and 38% bearish positions observed in the options market [2] - Major market movers are focusing on a price range between $60.0 and $130.0 for United Airlines Holdings over the past three months [3] Group 2 - The mean open interest for United Airlines Holdings options trades is 401.75, with a total volume of 3,346.00, indicating strong liquidity and interest [4] - United Airlines operates a hub-and-spoke system, primarily focusing on international and long-haul travel, especially across the Pacific [5] - Industry analysts have set an average target price of $140.2 for United Airlines Holdings based on recent insights [6] Group 3 - The current stock price of United Airlines Holdings is $115.28, reflecting a slight decrease of -0.1%, with RSI indicators suggesting the stock may be approaching overbought conditions [7]

Investors with a lot of money to spend have taken a bullish stance on Cisco Systems (NASDAQ:CSCO).And retail traders should know.We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with CSCO, it often means somebody knows something is about to happen.So how do we know what these investors just did? Today, Benzinga's options scanner sp ...

Company Overview - Spotify has experienced a significant decline of approximately 33% over the past year, contrasting with the S&P and the XLC communication sector, which are up by roughly 12 to 14% [1][2]. Market Position - Within the music industry, Spotify is positioned at the lower end compared to competitors such as Tencent Music, Live Nation, Warner Music, and Sirius XM [2]. Technical Analysis - The stock is currently viewed as overvalued despite a 46% drop from its highs, indicating a bearish outlook in the short term [3]. - Recent low points for Spotify include 405, which was reached in the latest trading session, and previous lows of 475 and 500 during significant market events [4]. - A downward sloping channel has been observed over the past two quarters, with a recent break below this channel, leading to a steeper downward trend line [5]. Moving Averages and Indicators - Moving averages indicate a continued downward trend, with the 5-day weekly EMA around 445 [6]. - The Relative Strength Index (RSI) is at a low of 22.5%, suggesting potential further weakness in the stock [7]. Volume Profile - Volume analysis shows significant trading activity during the decline, with notable volume nodes between 407 to 427 and 500 to 520 [7]. Trading Strategy - A bearish trading strategy is suggested, focusing on a March 20th expiration with a potential range of 363 to 491 [8]. - A specific trade example includes a short call vertical at a 275 credit, with a break-even point around 470, indicating a max profit of 275 and a max loss of 725 [9][10].

Core Viewpoint - Mixed sentiment in options trading for Netflix (NFLX), with shares experiencing a slight increase of 0.8% to approximately $81.52 [1] Options Trading Summary - Options volume is relatively light, with 123,000 contracts traded, and calls leading puts, resulting in a put/call ratio of 0.37, which is lower than the typical level of around 0.69 [1] - Implied volatility (IV30) has decreased by 1.15 to approximately 34.81, which is above the 52-week median, indicating an expected daily price movement of $1.79 [1] - The put-call skew has flattened, suggesting a modestly bullish sentiment in the market [1]