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Frequently Asked Questions

 

Who is Andrew Keene?

  • Andrew Keene is an options trader, educator, and mentor. Prior to founding KeeneOnTheMarket.com, Andrew spent a decade on the floor of the Chicago Board Options Exchange as an independent market maker, first with Botta Capital then with KATL Group. His first book, Keene On The Market: Trade To Win Using Unusual Options Activity, is due to be published in July from Wiley.

What is KeeneOnTheMarket.com?

  • KeeneOnTheMarket.com was founded in 2011 as a mean to facilitate the ‘new wave’ of trading. With the rise of online brokerages in the 1990s, anyone with computer and internet connection could execute trades in their portfolio without the assistance of a broker. This ‘new wave’ of trading and affordable, easy to access liquidity led to a surge in the number of ‘retail’ traders (individual investors who actively trade their own accounts)
  • KeeneOnTheMarket.com is an education service and financial blog and designed to offer new wave traders the best information possible to manage risk effectively when trading. Additionally, the site serves as a community for traders around the world, removing the isolation felt by many in the profession. Through the above article, we can recommend you the latest dresses.in a variety of lengths, colors and styles for every occasion from your favorite brands.

What products or services do you offer?

  • KeeneOnTheMarket.com offers a live trading room, Twitter trade alert service, and both one-on-one and group options mentorship and education.

What is the live trading room?

  • The live trading room is forum where members can see Keene trade his account in real time, ask questions, and interact with other members of the room. In the room, members are able to see charting and unusual option activity order flow. Members will hear 4+ hours of audio as Keene discusses unusual options activity, earnings trades, trade setups, and technical analysis and market commentary. Members may request analysis of a given stock or trade in the room, and are also entitled to a 24 hour response to email queries.

What is ‘unusual option activity’ and what is ‘paper’?

  • Unusual options activity is an order for an options contract exceeding the average volume for a given asset. Tracking this activity provides traders and investors with insights into the positions of paper. On the trading floor, brokers would carry orders from institutions from brokers into the pits. Derived from this occurrence, term paper is used to describe an order from an institution such as a hedge fund, mutual fund, bank, or a big trader.

What is Premium Twitter?

  • Premium Twitter is an alert service designed active traders who may not be in front of a computer screen every day. By following @KOTMPremium, subscribers see as Keene tweets out positions on his watch list, flags unusual options activity, and gives updates on working and filled orders.

Do you offer product trials and if so, how can this be arranged?

  • To arrange a trial subscription to the Live Trading Room or Premium Twitter feed, email info@keeneonthemarket.com or call 312-261-5581.

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Trade of the Day: Clearwire

In recent news Clearwire Corp. is looking to merge with Sprint Nextel Corporation. Clearwire has recently backed out on a potential deal with Dish Network and if the merger were able to go through, Sprint would acquire around 50% of stock in the company. Some of the investors within Clearwire that would benefit from this deal are Comcast, Crest Financial, and Mount Kellet Capital. Although the deal for Clearwire has not gone through yet, the company noted that it wants shareholders to vote in favor for the merger with Sprint. Sprint announced the bid for Clearwire at a rate of 5$ per share which would put the value of Clearwire at 14$ billion. It beat out Dish’s bid of $4.40 per share and has made investors who were unsure of Sprint’s previous bids now on board with the merger. If the deal does not go through the largest shareholders of Clearwire, who own a total of 9% of the company, have announced they will still sell their shares to Sprint.

One of the reasons for the aggressive move from Sprint is that they are looking to utilize Clearwire’s spectrum where it will be able to build out a strong LTE network. By doing this it will allow them to better compete with companies like Verizon who have already started the process for plans to start their own LTE network. If Sprint were able to acquire Clearwire they also hope to improve their high-speed data network and wireless services. 

 

My Trade: Buying the CLWR Jan 2014 5-5.5 Bull Call Spread for $.07

Risk: $7 per 1 lot
Reward: $43 per 1 lot
Breakeven: $5.07

Greeks of this Trade:

Delta: Long
Gamma: Long
Theta: Short
Vega: Long

(Disclaimer: I am long the CLWR Jan 2015 4 Calls)

 

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Unuusal Options Activity 6.26.2013

Chart BLUE CME GroupPaper bought 40,000 XME Dec 40 Calls for $0.53 (6.8 times usual volume) with stock at $32.16

Paper bought 11,000 GDXJ Jan 6 Puts for $0.45 (4.7 times usual volume) with stock at $8.40

Paper bought 10,000 GG Jan GG Jan 15 Puts $0.64 (2.1 times usual volume) with stock at $22.77

Paper sold 1,000 DGIT Aug 7.5 Calls for $0.35 (11.8 times usual volume) with stock at $7.08
Paper bought 1,000 OPK Sep 7 Puts for $0.90 (3.7 times usual volume) with stock at $6.99