The point of today's post is to show you why unusual option activity is a leading indicator of potential price move in the underlying stock. Yesterday, in our trading community in our Elite chat room, I saw large blocks of call options hit in DirecTV (DTV). At the time the stock didn't move, but I told my members to keep an eye on this because the day before we picked up large call buying that was hitting my system in International Paper (IP), which we jumped into and had a nice intraday trade. Prices in (DTV) started to run and breakout higher with more large call buying coming across the tape. Those calls jumped some 100% intraday, leaving those insiders that pumped the stock with takeover chatter a nice pay day.

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Follow alongside professional  trader Josh Belanger as he follows the footsteps of the smart money traders, while he educates you and points out the trades that have the highest probability of making money.