5640% on $TSLA Friday Puts (we missed the trade)

Ahh it’s Monday and it’s options expiry week.

Which means one thing and one thing only of course - max fuckery.

Tesla opened Friday at $176.07 and closed down 2.38% at $167.98 - which if you’re an idiotic bagholder, was just another day at the office getting your

But this kind of move even for $TSLA on a Friday means options traders got paid.

Look no further than the $170p which opened the day at 0.15, hit a low of 0.05 and an intraday high of 2.87.

0.05 —> 2.87 = 5640%

For a fan of degen action on a $100 budget…

0.05 x 20 contracts

20 contracts x 2.82 = +$5,640

Not bad for a few hours and two clicks of the button.

Earlier we wrote that flow rarely lies, contrary to what your discord leader may be selling you… no signal can ever be 100% accurate.

RIGD looked under the hood and here’s what happened:

From 9:48 - 10:01 almost 90% of the volume and premium for options sweeps were calls.

Even as $TSLA started to move down, traders were betting on a comeback.

It’s not until 10:04 when the put volume starts to come in with 12 sweeps at or above the ask in a row (bearish indicator).

Price continued to fall 4% from there. If you followed the put spike from the RIGD alert with a 175p (coming soon), you were in profit the entire day.

Options went up 5640% due to the expiry (same day) and the size of the move.

Given that was weekly opex (like the Lakers beating the Warriors during the regular season) and friday is monthly opex (like the Lakers beating the Warriors in game 6 at home because Jordan Poole is a bum), there should be some outstanding trades to take this week.

Maybe we should stop writing and get back to building so you can test it out.

RIGD Reports on $SPY

Ten days of tightness and low volume, where we go next is anyone’s best guess.

Bears may finally be able to breathe and pay the rent this week because Jim Cramer said yesterday, “An economic wave is about to hit that will be fantastic for investors.”

We have this theory that Cramer is fed all kinds of insider information which he uses to get rich and then mainly goes on to say the opposite on television while occasionally dropping in a small leak here and there. There’s really no other explanation to being so consistently wrong over time.

As a leading contra - maybe the time to buy some cheap puts is now.

(or maybe not)

Looking at the 5/19 monthly options expiry the positioning is uber-bearish.

Highest OI Call - $400 - 77,120

Highest OI Put - $400 - 144,950

There’s 87% more open put contracts than calls which typically results in someone getting hurt.

It’s only Monday but the setup is already getting juicy.

The $SPY options flow:

At 9:43am someone opened a massive bull call spread today buying the 405 call for 5000 contracts and selling the 410 call for 10000 contracts and the 415 call for 5000 contracts.

They hit the same trade again at 12:01 another 5000 405 calls bought and then another 10000 410 calls sold and 5000 415 calls sold.

This trade makes A LOT of money if $SPY closes above 405, but below 410 and 415. We just did some ghetto math (probably wrong) but if $SPY closes at $408.21 on Friday the profit would be something like $15 million.

Again, it’s only Monday and a lot could change between now and Friday.

However if you never saw this trade get put on, it’s easy to convince yourself to join the bears at the 400p or even the 390p which has the second highest open interest.

But the stock market is rigged against retail.

This information is difficult to find and even harder to make sense of.

Try doing it in Robinhood… how are the lizard people positioned to make the most money?

You can’t.

It’s not setup to help you win trades.

It’s setup to make it easy to click market buy and sending money to Citadel.

And that ladies (hello if ur out there please respond to this email with ur insta) and fine esteemed gentlemen readers of The Report is why we’re building RIGD.ai 

Because…

#1 who has the time to look at this stuff all day we just want to take trades and make money

#2 the big guy always beats the little guy so we want to follow make money by following the hot ball of money wherever it goes

Oh and remember the bull spread opened at 405… this strike also happens to be the maximum pain level for Friday where the most amount of contracts expire worthless.

Someone always knows something 🤯

thanks for reading THE REPORT by RIGD AI

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p.s. we are hiring a data scientist with experience trading options. is it you?