Good morning, traders…

An undeniable sweep hit my OMEN Scanner yesterday.

Three trades lit up the volume in under a minute. 

The first hit the ask under $1. 

Seconds later, another tagged the bid. 

Then came the hammer. A third trade of nearly $700,000 into the same strike, same expiration. 

Altogether, someone bet close to $1 million on a single options contract. 

That kind of size doesn’t drift in from retail on Robinhood. It comes from in-the-know traders. 

It implies the Smart Money knows something we don’t…

When I see such an unusual order, I go straight to the chart. 

I want to know where it is, where it’s been, and what might happen next. 

And what I saw yesterday stopped me dead in my tracks. 

This setup has structure. It has time to run. And with the company reporting earnings in nine days, it also has a major catalyst on the horizon. 

Let Me Show You Why This Trade Stood Out, The Contracts I Bought, And My Game Plan For The Trade…

The Smart Money Gets Schlumberger’d

I’m talking about this sweep on Schlumberger Ltd. (NYSE: SLB):

Same contract, enormous premium, at the ask. 

That’s exactly the kind of unusual Smart Money order flow I’ve based my entire strategy on. 

I pulled up the daily chart. It told the whole story…

The stock is in a clearly defined range. That gives us a starting point. 

Notice it has tried to break $36.70 three separate times. That’s resistance. 

Think of it like a glass ceiling. Each hit creates a spiderweb crack until one finally shatters it. 

Below that, there’s support at $33. Again, the stock has bounced there three times. 

Earnings are nine days out. The Smart Money volume is in November calls. 

That sounds like someone making a bet that a) earnings will beat and b) the stock will run after. 

I bought Nov 21 $42.50 calls. 

Here’s the game plan…

Entry: $0.96. 

First price target: $1.15. 

Stop loss: $0.70. 

Why Not Wait for the Breakout?

There’s nothing wrong with waiting for the resistance to crack.

Set an alert at $36.70. Be ready if it breaks. 

But for me, if Smart Money is piling in now, under $1, I’m comfortable taking the shot. 

If the price dips to $36.25, I might add. My stop stays under $34.50, risk stays defined, and I sleep like a baby. 

Some folks like to wait for the breakout. Others will plan ahead and manage any potential pullback. 

I’m in the second camp on this one.

Low IV Makes This Setup Juicier

Think of implied volatility (IV) like insurance for market makers (the people who sell you options)…

A 59-year-old woman in a sedan with a clean driving record pays less than a 16-year-old boy in a Ferrari. 

It’s all about risk.

High IV means the market makers expect big price swings. You’ll pay more for the right to make gains from those swings. 

That can work fast both ways. If you’re betting in the wrong direction on a high-IV contract, your premium will evaporate faster than an ice cream cone on a hot July afternoon. 

Low IV means smaller expected moves and cheaper entries. If a low-IV contract makes a larger-than-expected move, it’ll gain far more than a high-IV contract doing the same. 

SLB IV sits around 33%. That’s low. 

Any significant move in this stock could cause these contracts to 2x, 3x, or even 5x. 

That’s what flagged the SLB trade. Big premium. Aggressive fills. Attractive IV. 

It checks all of my boxes.

You don’t need to dig through option chains to find trades like this one…

I discovered this sweep right on my OMEN Scanner. 

Don’t be late to the best setups in the options market.

Join Danny Phee TODAY, JULY 10 at 7:00 p.m. EST for a LIVE OMEN WORKSHOP where he’ll go over our top Smart Money trade ideas for the week.

Last chance — Click here to sign up before it’s too late. 

Happy trading,

Ben Sturgill

*Past performance does not indicate future results