This Stock Fell From $194 to $41. Institutions Just Made a Massive Bet.

Institutional buyers are flooding into these three  names. Now is the time for retail to really pay   attention. Joining us today is a new guest. We  have Andrew Keane from alphashark.com. Andrew,   thank you so much for being here today. I know  that uh institutional flows are your favorite   thing to follow. And this list today is really  interesting. I think it's one that our viewers   are going to like all three of the names that  you have to offer. So, I can't wait to get into   those names. First, I want you to talk a little  bit about your strategy and why you are always   looking at institutional flows. I'm a trader  uh through and through, thick and thin. Uh I   trade all derivatives, so all options. Um to be  honest, 95% of my trading is just long calls. Uh   the market goes up 85% of the time. So, I'm mostly  just long calls, not too much of complex order   strategies. I was trading on the trading floor  at the Chicago Board Options Exchange in 2001.   I've been trading now for 25 years. and I had a  very successful career down there trading order   flow in the option market. So what I'm watching  for is huge massive bets in the derivative space.   We never know a trader stock position or their  option position. They don't label it as this is   speculation or this is a hedge against a basket  of stocks, but we can surmise from other things.   I watch this throughout the course of the day.  I've been doing it for 25 years and you know   people have the opportunity to watch it with me  live. We also do a trade alert service and I'm not   really a day trader to be honest. I'm more like a  swing trader. Average hold periods are about two   to 10 days. Options are a derivative of stock.  So, you only need a stock to move, you know,   a couple dollars sometimes to get a potential of  like 50% or 100% profits in options. Yeah, you are   an options person for sure. But I also think the  principles that you're looking at apply to people   who like to buy and hold, whether that's holding  for a few months or a few years. Talk about how   that can help those kinds of investors to look at  what the institutional buyers are doing right now.   It's fascinating how you look at it. There's about  8,700 publicly traded companies. There's 4,200   companies that have options in them. So, not all  the companies have options. And then throughout   the course of the day, there's so many trades  that hit the tape. And basically simple and easy,   there's volume, which are how many options trade  today. And there's open interest to how many exist   before today. So all we're looking for is big big  blocks of calls being bought in the option space   on a certain stock, certain expiration, and then  basically I mimic their positions. And most of my   trades are less than $100. You know, an option  that costs 80 cents you controls 100 shares of   stock is $80 to get in that trade. You know, not  every trade is going to work. There's trades,   believe it or not, I say it, the trades that do  lose money. We have three, you know, really good   candidates today that I like. I like to trade more  volatile stocks, especially in the option market.   If you're trading a stock that only moves like 20  cents a day, that option is not going to move. But   when you have a company that we'll talk about,  the three companies I have with bigger ATRs,   they can move very quickly, very fast on any  specific nukes. And we're going to talk about the   timeline for all three of these. Again, looking  at it from an option strategy, but also for just   someone who wants to buy the stocks right now and  hold until they might reach their peaks again. You   absolutely are right. All three of these names  are very volatile. A couple of them some of our   viewers are probably familiar with. One maybe  not so familiar with, but they're definitely in   that pre-revenue early stage companies with a lot  of interest that kind of es and flows. Those seem   to be great stocks for traders and anybody who's  into options. But are they also good stocks for   the average retail investor who is isn't ready to  get into options or trading yet to also be looking   at some of these names? So right now I think it's  an opportunity and a risk versus reward setup to   look at the names that I'm looking at. And like  I said, it's possible that they do go down more,   but also in the option market, I have a very long  time frame. Expirations I'm looking at is October,   December, and January. As a trader, you know, like  January may seem very close on somebody's radar,   but for me, like January is so far away. If  we have any news whatsoever in this space,   these things could take off. And then once  again, an option is the right to buy stock.   So these options will move a lot faster  than the stock will as a percentage. Yeah,   it's a different way of approaching it, but no  matter how you approach investing or the market,   these three names are really interesting to look  at right now, and I can't wait to dive into them.   You can tell Andrew is very well-versed on so  many different stocks in the market. He's live   every Monday through Thursday from 9:30 to 10:15  Eastern, uh, live trading with all of his own   subscribers. He also has a program where he's  sending out text alerts for anyone interested   in options and learning more about Andrew's  strategy. This is a great program. You can   get a special offer for your first month to sign  up and learn how to do options and training with   Andrew by following the QR code on your screen or  the link in the description. Again, Andrew, thank   you so much for coming on and sharing some of your  experience with our viewers. Let's get into that   first stock that you are looking at today. Okay,  so the first stock, we'll go by expirations, too,   is XE Energy. And this one recently just IPOed.  Literally, we talk about these IPO dates, and this   stock was trading $37 on the third trading day. In  the world of IPOs, we see a lot of them going down   after the IPO, and the stock has gone now from $37  to $13. So, it has lost 23 of its value. They're   a nuclear SMR fuel company. They're backed by  Amazon. They IPOed in April. They are pre-revenue.   So, you know, you think about it as a valuation.  This isn't what I was looking for, but we actually   saw an institutional trader buy some upside calls  in October. So, the specific strike that I'm   looking at here is the October 16th, 2026. That is  the day they expire the 35 calls. This option was   initially bought by an institution for $1.70. So,  $170 per one lot. And that option is now down to   $25, which is unbelievable here. So once again,  we never know if the institutions buying calls and   then they're selling the short stock against it.  But I just looked at as an opportunity. I bought   some more today. One of the things I look at is  the RSI. RSI has now gotten under 30, which means   it is oversold. The ATR, which is the average true  range, how much it moves on a daily basis. It's   around a $1.70. The higher the ATR, the more it'll  move on a daily basis. So, it has a a potential to   bottom. Today, it did hit a 52-W week low around  1320. Has come back, but now I can get into that   trade today. I have the right, but not obligation  to buy 100 shares of XE between now and October   expiration on the 35 strike for only about $25  per one lot. Yeah. Let's talk about a little bit   more about the company. Uh, SMR type companies  have had a really rough few months. We've had   several different people on talking about this dip  in the whole nuclear sector and it's interesting   that this company IPO'ed and did so well in the  first few days during a time that the rest of the   market for small modular reactors was actually  down pretty low. Uh what's your take on that? Is   that maybe impacting some of the downward action  here? Is just it's a part of a sector that is also   seeing a lot of downward action. There could be  shifts out of, you know, these modular companies,   but all it's going to take is one, two, three  spikes. And like I said, for a trader, I have   basically three months on this trade for it to  work out. And for me to get in at $25 per one lot,   I think it's just an unbelievable reward setup. I  don't need the stock to get back to 35. Okay. But   if the stock can go back, you know, down 8% today,  if it goes up, you know, it moves a $1.75 a day,   if goes up three days in a row, that option  will probably triple in value. Okay. So,   this one in particular is so interesting, Andrew,  because it is hitting that new 52- week low. The   conversation about how the nuclear sector is doing  is also interesting, but I'm curious for you. Are   you caring about the fundamentals of this company?  Did you, you know, do a ton of research on this   name before you invested, or is that not something  you pay attention to in the options market? So to   completely honest in the option market I do not  look at what the company does ever. I've traded   probably half the stocks that have options in the  whole derivative space. But a lot of times for me   it doesn't matter because all I'm looking for is  institution order flow. You know we think about   it and you think about do insiders trade on you  know non-public information? Are people trading on   insider trading? I know my personal answer for it.  you can kind of guess what your personal answer   is, but I'm looking for these institutions that  are buying big blocks of calls and then, you know,   I'm just follow them in there because when I was  on the trading for for 10 years, we had a trader   that came in as a Maril Lynch broker and they  sold put spreads in Apple. Doesn't matter what   they did, they were getting long Apple through the  option market. Then I followed this exact trader   for two straight years and I made a lot of money  doing it. I've been trading now for 25 years.   I have traded everything possible for me. This  is the simplest, easiest way. I call it the KISS   system. Keep it simple. Just follow what the  institutions buy in the derivative space and   you piggyback their trade with that. Okay?  And you know, these trades we're looking at   are anywhere between $50,000 and a $5 million bet.  You know, someone's probably not going to put on a   $2 million bet in the derivative space unless they  know something. So, this is what I'm watching for   in the option market. So, let's look at how big  of a bet you saw on this stock in particular.   So, they bought about 2500 calls and this was a  couple weeks ago um at $1.70. This option has gone   down in value. And the institution, number one,  they're not always going to be right. You know,   just because they make a big bet, they're not  always right. They're usually right more than   they are wrong. And also, they don't care what  the initial option does over the course of a   couple days. They just care in the long run, are  they going to make option money on the trade? So,   this was about a $400,000 bet in Exi, which is  a pretty big substantial bet. And like I said,   today the stock was down 8%. It was an opportunity  for me to add to my position. When I buy an option   for $25, it can only go to zero. You know, if  I bought this stock, a 100 shares of stock,   it's going to cost me $1,300. That option  is only going to cost me $25. So, I prefer   trading options. Obviously, you could trade the  stock. Like if I wanted to trade the stock today,   it did bounce back about 4% from the lows. I'd buy  the stock on the close. I'd probably have a 1250   stop loss and then I would just let it run to the  upside. So that's how a trader could trade it um   if they wanted to just trade stock. Very helpful  for our viewers. Gives you a couple of different   ways to approach this name and also just get to  to bring it to our attention that there are some   institutional people who are betting on this stock  going higher over the next few months. And I think   that's something to pay attention to. uh which  is why I'm glad we have you on the show today,   Andrew. Let's get on to that second stock that  you are looking at. The second stock is Oakllo,   OK. Once again, another one of these pre-revenue  names, small modulo company, AI data centers. I'm   sure you've heard it on the Market Beat channel  and everybody's talking about the AI data centers.   And once again, this is one of these names that  has gotten absolutely crushed from the highs.   it traded up to $194 and today it traded down to  $41. Okay. And once again, what we saw and this   trade happened a couple days ago, they were  buying upside calls in December. So they are   buying the December 18th, 2026. They were buying  the 90 calls. Okay. About 50,000 of those trade.   So that's the rip an obligation to control five  million shares of stock. I watch this option. So   like a lot of times when it hits the tape, I don't  necessarily get in. These got bought about two or   three days ago for $3.40 per one lot. One contract  is going to cost $340. And today I got in for   $230. So basically I have the right an obligation  to buy Oaklo. And the option is going to move with   stock. So stock moves up, I'll make money. stock  moves down, the option will lose money. But once   again, I look at how many days until this option  expires. It's 155 days. So, I'm spending $230 for   155 days. You know, if I think about it, it's not  really going to cost me that much. Once again,   I go to look at that RSI, which is our relative  strength index. It's under 30. So, this stock is   completely oversold. It has a big movement. You  know, today it moved $4. Uh, it's ATR, how much   it moves every day is $4 as well. So, all I need  this stock to do is pop probably two days in a row   in the next couple months and these will go up 50%  in profit. Yeah, this is a good name for movement.   We know uh from following this on the channel that  Oaklo definitely moves uh quite a bit and it's   been a great name for investors and then it's been  a terrible name for investors, especially those   who got in when the stock was on a huge runup. So,  I it's no surprise to me that people who are in   the options market are also following this name.  I do think that that seems like a really fairly   significant institutional options trade on a name  like this. Is that typical, especially for a stock   that's uh the size of Oaklow and also still a  very much a pre-revenue company? Yeah, I mean   that's that's a very large bet in the derivative  space, a 50,000 lot contract. So today was when   I initiated my position in Oaklook. So I didn't  get in, you know, when they bought it, but that   was on my radar. And it's so funny that some days  stocks move exactly their ATR and today the stock   was down $4. The average true range is $4. So I'm  like, "Okay, here's an opportunity for get for me   to get in." And I've been trading for so long. And  like I said, people can come watch me trade live.   I do trade about a $200,000 account with Thinker  Swim. So I'm a pretty big trader. And today was an   opportunity for giving me. If OO goes lower, I'll  be honest. I'm going to add to this position and   I'll probably add a third time, too. So, this is  kind of like a starter position today. You know,   if I make profits, the stock reverses and goes up,  I'll take my profits off. But, if it goes down,   as a trader, I don't mind getting more into this  position because, like I said, these expire in   December. One contract was $230. It's not a  lot of money. If OAL goes to zero tomorrow, I   lost $230 per contract. I think that's why so many  people really do like options because the risk uh   in dollar value anyway is quite a bit lower even  though there is of course still plenty of risk in   the market. I know you mentioned uh your trading  program again. I just wanted to give people a   chance if you do want to learn more about options.  Andrew is clearly a very good teacher who's been   doing this for a long time. You can scan the QR  code or go to that link in the description to   get more from his program. Now Andrew, we have  one more stock to talk about and you've been so   good at explaining the process of options. Um, I  really liked it talking about when you're selling   something. I think that's helpful for people  who have not really explored this before. So,   let's get on to that third name. The first two  have been an energy. And this is another name that   a lot of our viewers are going to be uh familiar  with because it's one of those high growth,   high-risk stocks that we have talked about a  few times on the show. Yeah. So, the last one is   another one that, like you said, I do trade live.  Um, I try to simplify options. I know for some   people they're like, "It's so complex. It's so  hard." But it's really, really simple. It's where   I get into an option and then where I get out of  it, right? And you know, when I buy a call option,   I don't look at any of the Greeks. I don't look at  charts. I don't look at a MACD. I don't look at a   moving average. It's actually the easiest trading.  It might seem the hardest, but it's the easiest   trading. And people have an opportunity to come  in to watch me trade opening bell. Um, I've been   trading it for subscribers for over 15 years now,  and I love it. So it's, you know, opening bell   9:30 to 10:15, 4 days a week. So the last one is I  NQ and this is a very popular one. This is quantum   computing. Couple months ago when these stocks  were absolutely on fire, actually about the end   of November last year, the stock got up to $84 and  everybody got on their high horse about quant, you   know, we talk about these these trends and these  these shifts. Once again, same thing valuations,   right? So this is one that only has about guidance  of $260 million and it's off the highs. So this   stock has gone from 86 to 35. The recent lows is  26. This is one that I actually might buy in my   personal account for stock for the future because  I do believe in quantum computing so much. So I   I saw a couple days ago they were buying some  calls in January and then today another trader   came in and bought some calls in November. This  was about a $1.5 million bet and they were buying   the November 60 calls. All we need to know is that  some trader somewhere in the world, we don't know   their stock or option position. We don't know  if they're hedging or speculating, took a $1.5   million bet in the derivative space that INQ is  going to move higher between now and November. So,   I am in this position. I'm looking to buy more of  this position. Once again, we look today RSI 26.   This stock is oversold. Just because a stock is  oversold doesn't mean it can't get oversold more   and more, but it is oversold in the short term.  And once again, I look at that average true range.   I like stocks that move a lot. Like on my radar,  I have a stock that is EOS that moves 59 cents a   day. And then I have a stock like this one that  moves uh $4 a day. That's a big move, you know,   on a $35 stock that moves $5, $4 a day. I only  need a day or two when this one can reverse. I'm   buying options out till November. Also buying  options out to January. As a trader, long term,   it's a long time away. So, if you look at the  three names I bought today, uh XE October calls,   Oaklo December calls, and then INQ January  calls. We can come visit on the show, you know,   in a month or two, and I'll talk about, you  know, did I make money or not? Thankfully,   this year we we do run 11 portfolios. They're all  up year to date. But, you know, who knows? Maybe   these trades won't work out. You know, that's the  thing about trading. You put on a trade because   you think you're going to make money. Not every  trade is going to make money. It just happens,   right? But I think today, you know, I didn't buy  these positions a couple days ago. I bought all   three of these today. I think today represents  a great opportunity as the market's down. AI   is getting hit today. Semiconductors are getting  hit. Anything pre-revenue is getting hit. Modular   companies getting hit. You know, who knows what  happens in the next a couple days. There could   be rotation out of something else into something  else. Maybe Wars comes out and says he's not going   to raise interest rates. Nobody can predict the  market or what's going to happen. Yeah, that's for   sure. There's no crystal balls out there who can  say exactly what's going to happen down the road   on the market. I want to ask a little followup on  Q before we wrap up today and that's is this the   only quantum stock that you were seeing this kind  of institutional inflows to? Are there other names   in quantum? I know we talk about quantum computing  stocks all the time. I love that you shared that   you are very bullish on this sector more long term  for your regular, you know, investing portfolio.   Do you think that there's other names that  investors could be looking at in the quantum space   or is this one stand out simply because of those  institutional flows? I personally, like I said,   I like ones that have bigger ranges. So like the  big three big ones that I look at is NQ, RGTI,   and QBTS. Like if you wanted to create a basket  of quantum computing names, you would get those.   I might be looking for stuff in RGTI. You know,  once again, that one's gotten gone down from 58   to $14. Some retail traders were buying at 58.  I'll tell you that. I don't know who they were.   They weren't me. But, you know, now that they've  gotten crushed so much, if there's, you know,   institution order flow, I will. And also, like  I have like a pattern, a routine of stocks that   I've traded before. So, I know I've made money  in Oak Oaklow this year, OKLO, and I've actually   taken InlQ and I've made money before that one. I  remember I had a a position IQ. I sold it. I made   a lot good money and it just kept going up and  up and up and I was like, why did I sell it so   soon? I was so mad at myself. So, I like to take  stocks that I've traded and made money before in   the past. I've never traded XC before because  obviously it's a recent IPO, but Olo and I NQ,   I do feel comfortable with my positions here.  Andrew, thank you so much for diving into uh   these three stocks today and giving us an options  view of how people can look at investing in these   names. really helping to grow their investing  journey. If you want to learn a little bit more   about how to do options or trade, here's one  of those most recent interviews here talking   about his strategy for trading options, too. You  can watch that full interview with Jeff Clark