$29 Option Strategist Trial

The Daily Volume Alert Newsletter

$149.00

Daily option picks based on unusual option activity

Professional traders are well aware of the fact that an increase in a stock's option volume is often the precursor of a move by the underlying stock itself provided you can "screen out" extraneous option activity. McMillan's Daily Volume Alerts scans for these opportunities on a daily basis and delivers trading recommendations along with valuable market insights to your inbox each morning in a concise newsletter format.

About the DVA:

The Daily Volume Alerts is delivered by email every trading day before the market opens. It includes a daily list of where "hot" option action is taking place, plus daily readings on our proprietary stock market oscillators (including the powerful "stocks only" oscillator). Stock and option picks are generated by observing unusual option trading volume, often a precursor to large moves by a stock. Subscriptions to the DVA include daily market commentary, specific trading recommendations, follow-ups and updates to active recommendations, daily NYSE-based and "stocks only" Oscillator readings, an Option Volume Alert Report for options traded the previous day, high implied volatility stock lists, and a report on stocks with extraordinarily strong volume.

A Daily Volume Alerts subscription includes:

  • Daily market commentary
    McMillan's pre-market analysis on the major market indices using a range of proprietary technical indicators.
  • Specific Trading Recommendations
    Trading recommendations based on observation of unusual option volume, technical analysis, and some of McMillan's favorite trading systems. Includes follow-up action, trading stops, position analysis, and a recap of what happened with previous recommendations (if there were any).
  • Oscillator readings
    Daily NYSE-based and "stocks only" Oscillator readings.
  • Option Volume Report
    Daily evaluation of stocks with unusual option activity.
  • High Implied volatility stock list
  • Extraordinarily strong volume report

The Power of Unusual Option Activity:

An increase in the trading of a stock's options over the normal daily volume is often a precursor of movement by the stock itself. This is especially true in advance of news items, such as earnings reports or takeovers.

If there is unusually high volume in CALLS, then we look for a spot to buy the stock; if there is unusually high volume in PUTS, then the stock may be either a potential buy or a potential (short) sale. The reason that heavy put volume may be interpreted as either bullish or bearish has to do with the fact that, if insiders are buying calls, it may force market makers to trade puts as a hedge. Thus a bullish situation could conceivably have heavy option volume in both the puts and the calls.

Note that we said buy the "stock", but in reality many traders prefer to buy the short-term, in-the-money options. These options have the least time value premium and will most closely mirror the movement of the underlying stock. You would buy calls for "buy stock" recommendations, and you would buy puts whenever we have a "sell stock" recommendation. So, wherever we say "stock" in this report, you may want to substitute "in-the-money option" as you are reading it. We generally state which option we feel is the best one to buy when the initial recommendation is made.

This service highlights situations in which a stock's options trade in volume at least double the "normal" amount. It is intended for serious traders who are involved on a daily basis, and have the discipline to exit losing trades quickly.

We do our best to eliminate situations in which the option volume is increased by spreads or by covered writes in a particular series, for these patterns are NOT at all indicative of an impending stock move, but obviously not all of these situations can be eliminated.

Note: this is NOT a contrary indicator. If there is excessively high activity in the calls, we will respect it and look to buy the stock. Similarly, if there is high volume in the puts, we look to sell the stock.

The Screening Process:

Lawrence G. McMillan developed the computer screens that "weed out" the most attractive candidates recommended in the DVA. It is important to realize that this is not merely a list of which options are the most active. Those "active options" are generally not where the smart money is operating. Rather, we compare the current option volume with the normal option volume. Then, we eliminate those situations where option activity has increased due to immaterial factors such as spread trading or covered call writing. After these screens have been made, there is a good chance that a trading candidate has been discovered.

Sign up today and spot takeovers and earnings surprises before they're announced.

Satisfaction Guaranteed

If you are not completely satisfied with your subscription, you may cancel at any time and a prorated refund will be issued based on the remaining unused portion of the subscription.

Trial Subscriptions and Paid subscriptions are not renewed automatically unless you choose an "autorenew" subscription. Regular subscriptions will expire upon completion if no action is taken.

List Price: $149.00
Price: $149.00

Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
Visit the Disclosure & Policies page for full website disclosures.

Testimonials*:  Testimonials are believed to be true based on the representations of the persons providing the testimonials, but facts stated in testimonials have not been independently audited or verified. Nor has there been any attempt to determine whether any testimonials are representative of the experiences of all persons using the methods described herein or to compare the experiences of the persons giving the testimonials after the testimonials were given. You should not necessarily expect the same or similar results.

Performance Results: Past performance results for advisory services and educational products are shown for illustration and example only, and are hypothetical.

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.