I wanted to take this time and share how I made over $20,000 in profit by leveraging the Cheddar Flow platform.
My Story
On August 8th, 2020, the day before Zoom (ZM) earnings, I noticed some very interesting and unusual order flow:
- Near expiration orders for $278k, $743k, $57k, $68k, $278k, $105k with volume exceeding open interest (OI)
- Orders with a longer expiration date of 03/18/21 for $993k, $1.2M. Very huge leap activity here.
- All orders are of the Sweep type which is what we want to see when institutions are aggressively coming into a position.
A large institutional investor (maybe more) is betting on long side just before earnings. I know that at the time of the earnings, the unusual options flow is of little relevance, but these are huge one-sided bull signals. That’s why I only buy a small position to protect my account. Additionally, we noticed that Cheddar Flow’s AI power alert was triggered for ZM which provided us with even more conviction for this trade.
I bought 2 contracts for a total of $2,772. My idea was to sell and close out the same day, however, because the flow kept increasing to the upside, I decided to leave the position open through into earnings. Everything was lining up perfectly.
Zoom ended up beating earnings which resulted in a massive gap up the next morning. I ended up selling the two contracts for a little over $20,757 USD. Cheddar Flow provided me the crucial information to continue holding into earnings….and glad I did!
Final Thoughts
This platform helped me stay in the trade and understand where the smart money was moving into. I let Cheddar Flow work for me. This is an unrivaled tool and I know I have not yet discovered all of it’s possibilities. I’m still learning.
I trade in the EOT Discord server. Feel free to join us and come say hello!
Thank you,
David Ševčík
P.S. I have also provided a quick recap video of this trade for further verification.
