The Cost of Doing Business

Hello trader, I hope you got off early for the holidays, and are enjoying some much-needed relaxation and time with friends and family. In the spirit of the holidays and the latest Star Wars moving dropping… I wanted to bring to your attention an insider trading case that Yoda will not approve of.     Walt Disney Co (DIS) is one of the hottest companies on the market… and it seems like they're always acquiring companies left and right. It's their way of showing their dominance and why they're able to put out such amazing content for the world. For a company so massive, there will be some bad apples in there… those who don't play by the rules and dole out non-public information. I hate spoilers. These "insiders" don't care if it's illegal, and I don't think they should work at a place that puts as much joy into people's lives like Disney.   How One Well-Informed Trader Turned $5,400 into $192,000!   Back in 2011, there was a high-profile case that involved Marvel Entertainment (acquired by DIS) and Walt Disney Co. An investment manager — Toby Scammell (who was just 26 at the time) — had a girlfriend who worked at Marvel. Scammell purchased some pretty deep out-of-the-money call options in Marvel in mid-August 2009. Heck, this guy didn't really try to hide his purchases. He dropped bought $45 and $50 strike price calls… and Marvel had never traded above $41.74 then. Not only that, but the options he purchased were set to expire on Sept. 19, 2009… just weeks after the announcement. Those trades were so unusual at the time that he was the entire open interest in some of those contracts. He was essentially the market in them. Here's the kicker, he used his brother's account to buy those options. Before he bought them, he apparently searched for the terms "insider trading" and "material non-public information". He knew something was up… and he even knew what insider trading is. Yet, he decided to place the bet ahead of this catalyst.     Of course, he didn't even tell his girlfriend or brother he turned $5,400 into nearly $200,000… a whopping 3,000% return in less than a month. According to Rosalind R. Tyson, director of the SEC's LA regional office at the time, "Scammell exploited his romantic relationship for a financial windfall...His misuse of confidential information gave him an unfair and illegal edge over other traders in the markets." Scammell's girlfriend wasn't charged with anything because she didn't mention the company name… but he may have overheard a conversation or even looked at her emails and work, who knows.   Piggybacking off baby Yoda's company and trading off inside information is no way to play this game. The worst part about this is the fact there are still well-informed traders out there who place unusual options activity trades… just as Scammell did. However, what you may not know is the fact that you can directly profit from their move. Best of all, it's 100% legal.   Becoming A Jedi Trader   Dollar Ace is the one single strategy that helped me uncover massive profits in the options during the second half of 2019. I came up with a strategy that allows me to detect some pretty wild options bets.     I realized how Wall Street's elite and billionaires really operate. They have access to inside information, and covertly place bets in the options market. All you have to do is find these trades and come up with a thesis. It's really that simple. I don't know any of the information at all… everything my Dollar Ace strategy utilizes is there for the public to see. For example, check out this near-triple digit winner in Lumber Liquidators (LL). I spotted an unusual options activity trade in LL. It wasn't as crazy as Scammell's bet, but it was sizable. A whale came in and bought 2,409 calls in LL for 30 cents a piece, and those options had just about 2 weeks until expiration. It was a clear signal someone knew something.   So what did I do? I came up with a thesis, and followed suit.     Guess what happened not too long after? The company updated its 2019 financial outlook and raised guidance! That's a massive catalyst that caused the stock to rocket higher.         Sure, the stock moved a lot (more than 15% in a single day), but those options were up nearly 100%... and of course, I took my profits off the table.     If you take just a little bit of time during your holiday and attend my special training session... you will learn how you can effortlessly generate fresh trade ideas and uncover massive profits in the options market. Cheers to Profits!     Kyle Dennis       RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 Click Here to stop receiving emails from kyle@biotechbreakouts.com Unsubscribe from all RagingBull emails Neither Kyle Dennis nor RagingBull.com, LLC (publisher of BiotechBreakouts) is registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. 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