One of the best trading strategies out there is following the institutions, the "smart" money as some would call it. The best way to do this is by following the options. For example, remember Bear Stearns (BSC). 40,000 25 puts were purchased two days before the collapse, with only 8 days left to expiration. By following the "smart" money traders stand a much better chance of being on the right side of price action.
Here is the daily chart for Applied Micro Circuits (AMCC). 4,200 May 7.50 calls were traded today.
There has been a lot of institutional sponsorshop in RIMM recently. I will continue to watch this for any unusual option activity.
Today someone purchased 10,000 Oct. 40 calls at $2.70 a piece. That is not cheap and makes me think AA will be trading much higher in the coming months.
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