3@3 Pro – Market Rebellion (2024)

Recent Activity

3@3 will be held each weekday at 3 PM ET. Due to Jon’s fluid scheduling, 3@3 may be delayed or cancelled with little to no notice prior to the 3 PM ET start time.

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Please note Bill’s Q&A webinars are held weekly on Tuesday evenings at 8PM ET.
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3@3 Pro is a service based around the most compelling unusual options activity that UOA pioneer Jon Najarian spots every day.

Weekly Schedule

• 3@3 LIVE Episodes – Tune in at 3pm ET up to 5 days a week to unlock three of the day’s hottest UOA hits — as seen through the eyes of Jon Najarian.
• 3@3 Write-Up and Bonus Trades – Get a timely, in-depth summary of Jon’s 3@3 trades and bonus trade ideas from our team.
• Application Hour – Join us on Wednesdays at 1pm ET with Coach Scott Thorstensen as he breaks down Jon’s 3@3 trades and how to apply them.
• UOA Q&A Webinar with Bill Johnson – Watch Tuesdays at 8pm ET for the latest trading lessons, UOA insights, and technical analysis. Get your questions answered by Lead Educator Bill Johnson.
• Options School Weekly Lesson – Curl up with a fresh options trading lesson prepared by Bill Johnson every weekend.
• Market Outlook Newsletter – Start your week on the right foot with macro insights and technical analysis — delivered to your inbox every Sunday.

Understanding Unusual Option Activity

When we look for unusual options activity, what we’re looking for are leveraged trades in the options market that are very out of the ordinary. These fly under the radar of most traders, but using our proprietary Heat Seeker® algorithm in combination with careful analysis from options trading professionals, we’re able to see them the second they take place.

What does unusual options activity look like? Perhaps someone’s betting hundreds of thousands of dollars that an unsuspecting stock is about to rally in a big way, with no obvious catalyst or reason available to the public. Or maybe someone’s making an abnormally large trade moments before an earnings report with a firm directional bias. Sometimes, this can even be a trader acting on inside information — data that is unavailable to the public. Often, we find that these trades can give us a great idea of what’s about to happen, sometimes even predicting company buyouts and earnings results with striking accuracy.

For us, it isn’t important why the trader made the unusual options activity trade in question. All that matters to us is that we can help Rebels use this information to their advantage to trade smarter, and take back the power from the Wall Street elite.

What sets 3@3 apart from the competition. Unusual options activity is something that Market Rebellion co-founder Jon Najarian closely monitors every single day — a strategy that he and his brother Pete pioneered long before the industry caught on to this incredible tactic. In 3@3, Jon identifies three unusual options activity trades he’s seeing that have caught his eye that day, breaking down the action, and identifying how he’s trading them. That’s the most important part. While unusual options activity can be incredibly insightful, on its own it can’t provide the entire blueprint for trading success. It’s a piece of the puzzle, it’s not the entire picture.

That’s where we shine. In 3@3 Pro, we dig deep into the entire process Jon goes through when he’s analyzing a UOA trade idea in a clean, clear fashion. We identify the price at which we spotted the unusual options activity. We break down the charts, carefully notating key technical levels and chart patterns that lie under the surface of the market. We use discipline, not emotion, to dictate the actions we take as we manage every trade, and we break it all down in our trade log, deploying advanced strategies like legging into vertical spreads to lock in profits when they’re available.

Importantly, we don’t always take the unusual options activity exactly as it’s presented — and we always tell you when we feel it’s best to augment a trade. Commonly, we’ll look at the direction and expiration of a compelling piece of UOA, adjusting the strike price to one that is at or near the money rather than one that is out of the money. This can help us to help put probability in our favor, creating trades that don’t have to run as far in order to become profitable. Sometimes, this means our reward may not be as large as out of the money versions of these trade ideas — however, that’s okay. In the world of options trading, it’s often better to be a base hitter than someone who’s constantly swinging for home runs. And sometimes, when trading with unusual options activity, those home runs can bless your portfolio anyway.

That said, trading in any variety involves risk. And once a week, we like to identify out of the money trade ideas that we feel could be worth a shot. Those are what we call “OTM Long Shots.” These are trades which are not meant to comprise a large portion of anyone’s portfolio. In other words, no one should be “betting the farm” on these trades. Instead, these are trade ideas offering high risk, high reward opportunities to act on “smart money” hunches. These are things like this trade idea in Macy’s, featuring options bought for as little as $0.07 per contract, which were out of the money. Through careful analysis, our options trading experts identified that this option was underpriced relative to the average move that the stock had been making in recent weeks. After seeing repeated “smart money” activity in this name, we decided to strike. Those “smart money” hunches ended up paying off for the traders who placed those UOA trades in a big way.

Here are a few rules we like to stick to when placing and managing our trades.

• Using unusual options activity to our advantage. Unusual options activity is the basis of every single trade we make in 3@3 Pro, handpicked from Jon Najarian himself.
• Using vertical spreads. In 3@3 Pro, we often identify vertical debit spreads, which involve buying an option and simultaneously selling an option which is further from the money and worth less than the long option. These are always bought and sold at a 1:1 ratio. By doing this, we limit our risk, lower our barrier to entry, reduce break even points, reduce theta decay, and all-in-all push probability further in our favor.
• Defined risk and legging In. Bar none, every single trade we enter carries defined risk. Defined risk means the maximum amount of money you can lose in a trade is what you paid to put it on. One of the best ways to create a defined risk trade is through a vertical spread as mentioned above. As a trader you can” leg into” a vertical. Meaning, you buy to open the long leg first, and sell to open the short leg at a later time. In other words, there is absolutely zero “naked selling.” If you see a “Add leg- sell call to open” or “Add leg- sell put to open,” view the trade summary before acting — it will always be attached (adding to) to a prior long position.
• Using at-the-money strikes. Outside of our occasional “OTM Long Shot,” we often seek to target at-the-money strike prices when constructing our trade ideas. This means we’re often willing to pay a little extra in order to increase the overall probability of our trade. This helps us prevent situations where we’re directionally correct regarding the movement of a stock, but the stock doesn’t move far enough to benefit the option.

• As an example, if we see UOA in a stock trading for $50 a share, and the UOA targets the $60 strike price, we’re far more inclined to use the $50 strike at the money options than following those $60 strike UOA options. If the stock ultimately rallies to $60 and beyond — that’s great. But if the stock only rallies to $55, we want to be able to take part in that upside move as well. That’s why we utilize at-the-money options for many of our trades.

• Locking in profit. We actively manage these trades on a regular basis, closely monitoring every option we identify, every day. When there’s an opportunity to take profit, we try our best to capture that moment when it arises. Ideally, we like to take 1R on our trades — that means aiming to take at least the amount we risked in profit. For example, Jon Najarian often likes to sell half of a position after a 100% gain — reducing his risk and playing with so-called “house money.” That may also mean spreading or rolling the option, so that we can remain in the trade while taking money off the table. Or, it could mean closing the trade altogether, and moving on to the next one.
• Cutting our losses at 50%. If an option falls to 50% of its original value, we think it’s often best to exit the trade and move onto the next one. As Jon and Pete say, Discipline Dictates Action (DDA). By locking in profit when it’s there, and closing trades when the profit clearly isn’t there, we can give ourselves a better chance to stay in this game for the long haul.

These are rules that we feel help keep us alive in the world of options trading. By locking in profit when its there, knowing when to accept and cut our losses, using at-the-money strike prices for almost all of our trade ideas, and utilizing the secrets of unusual options activity, we believe we’ve developed a trading strategy that can stand the test of time in any market: bear, bull, or flat.

Now that you’ve decided to join us, you’ve unlocked a powerful resource. You’re a Rebel now: So make sure you trade like one. You don’t have to follow our 3@3 Pro plan — just make sure you have a plan, and most importantly, that you stick to it consistently. Following a consistent plan is at the backbone of all Market Rebellion strategies, because when you’re locked in the heat of a stock market battle, having a plan for every possibility can mean the difference between staying alive, and going belly-up. By knowing what we’re going to do before we ever engage in a trade, we can fight off emotional decision making, and achieve our ultimate goal of trading smarter. That’s what being a Rebel is all about.