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This May Be The Hottest Commodity for Any Investor

By Costas Bocelli May 12, 2022 Facebook Logo Twitter Logo Email Logo LinkedIn Logo

 

Insider trading is when someone uses market-moving, non-public information to buy or sell a stock.

For example, say you work as an executive at a company that plans to make an acquisition. If it’s not public, that would count as inside information. 

It becomes a crime if you either tell a friend about it – and that person then buys or sells a financial asset using that information – or if you make a trade yourself.

Punishment, if you’re convicted for insider trading, can range from a few months to over a decade behind bars.

Snoop Dogg pal and chef, Martha Stewart, was sentenced to five months behind bars for selling all her shares of ImClone Systems in October 2004. 

That’s all well and good except that Stewart’s Merrill Lynch broker advised her to do so having prior and private knowledge that the biopharmaceutical company had just lost a crucial battle with the FDA—and that ImClone’s CEO was on the verge of dumping his allotment.

In one of my favorite movies, Wall Street, shrewd financier Gordon Gekko makes millions of dollars by trading on inside information. 

The most valuable commodity I know of is information,” declares Gekko, who is convicted of the crime and sent to jail by the end of the flick.

And while I can’t say I admire Gekko as a person, I wholeheartedly agree with his perspective. 

In fact, information is so valuable TMI began a trading service that revolves around taking advantage of other traders’ knowledge and acting on it to profit.

I’m talking about riding the coattails of some of the biggest in-the-know options investors, who buy the biggest of lots for sums of money many of us can only dream about putting down on a stock.

What do these insiders know that you and I don’t? Doesn’t matter. Whatever it is, it’s enough to cause them to act with conviction. To put their money where their mouths are.

And all we need to do is trade right alongside them. We don’t need to know specific triggers for the investment. (In fact, I’d rather not know in case their intel was obtained by fishy means.)

Don’t get me wrong, these investors aren’t bad guys (at least most of them). They just prefer to stay under the radar and keep “certain information” close to the vest and out of the public’s reach.

For the most part, they’re successful—but not when it comes to subscribers to the Dark Money Indicator. This proprietary scanner can spot these characters and sniff out every move they make. They think they’re staying under the radar, but they stick out like a sore thumb on our proprietary scanner. 

The information these big options traders acquire is truly priceless. When they act on that knowledge by pouring money into a company it triggers what I like to call a Shadow Spike Alert. You can literally follow the money and share in the wealth.

We’ve followed the exact path and struck it rich (so to speak) many times.

Here are just a couple of DMI’s successful trades.

Mattel (MAT)

On Monday, May 2, a trade on toy-maker Mattel (MAT) triggered a Shadow Spike Alert. This person bet $247,000 to control a 380,000 share equivalent in stock. 

(Click any image to enlarge)

This trade occurred after MAT delivered strong earnings on April 27. Someone with deep pockets was betting big money that Mattel's all-time Q1 records for net sales, operating income, and EBITDA (earnings before interest, taxes, depreciation, and amortization) would push the stock higher.

But did this trader know something else that we didn’t? Sure enough, reports about a potential takeover of this $9 billion fixture in the toy business surfaced shortly after. Mattel’s market cap is right in a sweet spot for private equity investors.

At that point, shares of MAT were trading near fresh multi-year highs around $24 with its next level of resistance around its 2016 highs of $35. 

By May 4, the Call option in MAT went from $0.65 to $1.50 for a $131% gain in just two days. Even with the broad market selloff at the end of the trading, the MAT trade chalked up 69% in profits over the five trading days.

If shares continue to climb and hit that $35 price level (the next resistance point), the option from this trade will be worth at least $8.  That’s enough to turn an investment into a “10 bagger”, or gains of 1,000% or more.

Another great DMI trade I like to talk about is…

Bed, Bath, and Beyond (BBBY)

We got a hit on the scanner on March 1 for retailer Bed, Bath, and Beyond (BBBY)

The buyer obviously had their sights set squarely on BBBY despite the fact that the company had closed stores and struggled since the pandemic.

Sales for the just completed three-month period had plunged 28%.

What did they know that everyone else didn’t? 

Well, before the market opened on Monday, March 7, it was reported that GameStop (GME) chairman and Chewy (CHWY) co-founder Ryan Cohen revealed he had acquired nearly 10% stake or $12 million investment in the retailer via RC Ventures, his investment company. 

The stock rocketed as much as 100% intraday and ended the day up 34%.

Want more proof that DMI subscribers are having great success? Here’s a look at some more past trades…

And there's plenty more where those came from.

Got Options? Got DMI? You Should!

 

Costas Bocelli

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