Profit Pregame

The Dealbreaker on a WE Trade

Why I passed on a WeWork signal

The ill-fated WeWork IPO was a punchline on Wall Street for a long time – but now, WE is actually a publicly traded stock… and with options, too!

That means the relatively new name to the NYSE has already managed to trip one or two of my eight proprietary options scanners with heavy volume – but that doesn’t mean I’m necessarily taking the bait on this headline-driven stock.

What’s happening?

On Monday, WE calls were hot on my proprietary options scanner.

The contracts were under $1.00, which I love – since that gives me the opportunity for huge leveraged returns on a move in my favor.

But these calls were a non-starter for my $50K strategy right out of the gate, and my system automatically threw a red flag on the trade for me.

What’s the trade?

Specifically, there was a big block of December $17.50 calls on WE that hit my scanner early on Monday.

The contracts fit my “Sub$1” criteria – so, what was the dealbreaker?

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Why did I pass?

Well, just look at the size of the trade in that screenshot.

What I really want to see are trades where the volume (“2-4K”) is substantially higher than the open interest (“OI=3741”).

That tells me for sure that new positions are being created, and traders are using low-priced options to make swing-for-the-fences speculative bets.

That’s why the volume/open interest comparison is one key component of my options trading strategy – I need to know traders are lining up new positions, and not retreating from a gamble gone bad.

…and why XPEV was “AK Official”

Also lighting up my options scanners to start the week was a very familiar name – electric vehicle stock Xpeng (XPEV), with calls flying across the tape again on Monday:

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With volume comfortably outstripping the OI of 663 contracts, I liked this one enough to make it another scan idea in my live room.

What do you mean “another,” AK?

Well, as big-money options traders continued to pour into the stock and throw out actionable options signals on Monday, I was telling my subscribers to lock in profits on last week’s LIVE trade idea on XPEV calls…

Because this off-the-radar EV name had already been lighting up my proprietary options scanners late last week, with heavy volume at the $48 strike.

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Here’s the video of signals like the XPEV sweep signal that paid off.

That XPEV call play was just a bonus live trade idea on top of the official signals I send out via email.

And my upgraded 1450 Club features more live scanner access than ever…

As in, all day long.

So join me live, and claim your access to the most live options trade ideas I’ve ever offered.

See you there!

Andrew Keene

Founder, Profit Pregame

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