From the desk of Steve Strazza @sstrazza

This is one of our favorite bottom-up scans: Follow the Flow. In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish… but NOT both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.

Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

What remains is a list of stocks that large financial institutions are putting big money behind… and they’re doing so for one reason only: because they think the stock is about to move in their direction and make them a pretty penny.

From the desk of Steve Strazza @Sstrazza

Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.

We’ve also sprinkled in some of the largest ADRs from countries that did not make the market-cap cut. 

These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.

It’s got all the big names and more--but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.

The beauty of these scans is really in their simplicity.

We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.

Based on the market environment, we can also flip the scan on its head and filter for weakness.

Let’s dive in and take a look at some of the most important stocks from around the world.

Here’s this week’s list:

The big insider news from Thursday came in a Form 4 filing by RA Capital Management.

The firm reported a purchase of 2,200,000 shares of Nkarta Inc $NKTX, representing an ownership stake of 23%.

The largest insider transaction on today's list is a Form 4 filing by Simon Groom, who reported a $49 million purchase in the broadcasting company iHeartMedia $IHRT.

This is the video recording of our April 27, 2022, Inside Scoop Weekly Strategy Session.

From the desk of Steve Strazza @Sstrazza

Welcome to the 2 to 100 Club.

As many of you know, something we've been working on internally is using various bottom-up tools and scans to complement our top-down approach. It's really been working for us!

One way we're doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega-cap status (over $200B).

Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.

But the scan doesn't just end there.

We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.

We debuted a new scan recently which goes by the name- All Star Momentum.

All Star Momentum is a brand new scan that guides us towards the very best stocks in the market. This time around, we have incorporated our stock universe of Nifty 500 as the base. Among the 500 stocks that we follow, this scan will pump out names that are most likely to outperform the market.

The largest insider transaction on today's Hot List is a Form 4 filing by Ernest Garcia II, CEO and co-founder of Carvana $CVNA.

CVNA just raised an additional $1 billion via a private offering of perpetual preferred stock, and Garcia has taken a large allocation.

He remains CVNA’s largest shareholder by a wide margin.

It’s been just over three weeks since Elon Musk filed his original 13G and revealed an investment in Twitter $TWTR.

Now, it looks like he’s about to take control of the entire company.

Yesterday, it was announced that Twitter has accepted his $44 billion offer to take over the company and go private.

Here’s what else is happening in the world of insider activity…

With the S&P500, Dow Jones Industrial Average, Nasdaq 100 and Global 100 Indexes down in recent weeks, the Dow Jones Transportation Average has been up each of the past 2 weeks.

And Transports started out this week positive once again:

From the desk of Steve Strazza @Sstrazza

The market has become increasingly volatile as selling pressure spreads to the strongest stocks.

As bullish opportunities become more scarce, we’ve had to become more selective in terms of our long exposure.

This is because we’re trend followers. We want to be involved in uptrends, and as more and more uptrends come under pressure, we have fewer options. It’s as simple as that.

But when it comes to corporate insiders and activists, they actually become more active when stocks are under pressure. They love buying weakness.

So while there are fewer opportunities for trend followers like us, there is a growing list of opportunities for bargain-hunters like them. 

As such, insiders have been very active in recent weeks as stocks continue to slide. But they don’t only buy downtrends. There has been some activity in names showing impressive relative strength as well.

Let’s talk about a handful of leading stocks that insiders have shown interest in recently.

From the desk of Steve Strazza @sstrazza

This is one of our favorite bottom-up scans: Follow the Flow. In this note, we simply create a universe of stocks that experienced the most unusual options activity — either bullish or bearish… but NOT both.

We utilize options experts, both internally and through our partnership with The TradeXchange. Then, we dig through the level 2 details and do all the work upfront for our clients.

Our goal is to isolate only those options market splashes that represent levered and high-conviction, directional bets.

We also weed out hedging activity and ensure there are no offsetting trades that either neutralize or cap the risk on these unusual options trades.

What remains is a list of stocks that large financial institutions are putting big money behind… and they’re doing so for one reason only: because they think the stock is about to move in their direction and make them a pretty penny.