Good morning, traders…
The entire game just changed … again.
On Sunday evening, the Senate passed a funding measure to end the government shutdown.
Meanwhile, President Trump floated the idea of sending every American $2,000 tariff dividend stimulus checks.
Stocks exploded higher yesterday as the S&P 500 jumped 1% and the QQQ rallied 1.95%.
This is even more important when you consider the context.
The market spent late last week in “extreme fear” territory. The VIX climbed. Stocks chopped. Breakouts failed.
I said the choppiness was due to a lack of money flowing into the system. With the government shut down, we were in a “liquidity desert.”
But that’s about to end.
When the government reopens, federal spending resumes. Contractors get paid. Agencies place orders. Money flows back into the economy.
And ultimately, into stocks, commodities, and crypto.
I tracked nearly $1 million in aggressive call buying Friday afternoon — hours before the weekend news broke.
See what happened?
Smart Money traders knew this funding agreement was going to happen while retail investors panicked about “extreme fear” headlines.
And guess what?
Now they’re positioning for what happens next…
4 Names With Aggressive Option Flow
Where’s the Smart Money flowing now that the liquidity faucet has turned back on?
These four names are getting absolutely hammered with call volume:
Galaxy Digital Holdings Ltd. (TSX: GLXY)
This crypto-adjacent name saw a massive buzzer-beater option order Friday afternoon: nearly $700K at the ask for November 28 $33 Calls.
Just in time, the chart broke its recent trendline with wide range momentum.
Coincidence? I think not.
A break of $32.80–$33.00 would confirm continuation.
Sunrun Inc. (NASDAQ: RUN)
Solar company Sunrun pulled in big block orders Friday after a post-earnings dip.
The stock gapped up over 6% Monday, forming a bullish flag. A break over $18.70 (Monday’s pre-market high) targets the $20–$21 zone.
Marathon Digital Holdings, Inc. (NASDAQ: MARA)
Bitcoin miner MARA is forming a tight consolidation range near major support at $15.
Will it start an upside reversal here? The Smart Money thinks so…
November 21 $16 Calls show high volume with tight spreads.
Alkermes plc (NASDAQ: ALKS)
When I see an unfamiliar name, one that never shows up on my scanners, get tons of call volume — I’m intrigued.
This one caught an unusually large call order Friday before the close — over $130,000 worth.
Plus, the daily chart shows a potential squeeze setup breaking out of a long sideways range.
When consolidation patterns break on high volume with aggressive call buying … expect continuation.
How To Trade The Liquidity Surge
This is what we’ve been waiting for.
The government shutdown created a liquidity drought. Patient traders built watchlists and waited for conditions to shift.
Monday’s move confirms the shift.
President Trump’s $2,000 stimulus check proposal adds fuel. Take the promise with a grain of salt. I’m not sure we’ll actually get those checks.
But markets trade on forward-looking expectations. The idea of hundreds of billions in direct consumer spending entering the economy is impossible to ignore.
Bottom Line: This is the perfect environment for trading call options … with discipline.
- Build your watchlist around names showing aggressive Smart Money flow and strong technical setups.
- Set alerts above key resistance levels — or near key support areas.
- Wait for volume confirmation on the breakouts.
- When your triggers hit, enter with conviction. You’re trading with liquidity tailwinds instead of fighting headwinds.
- Adjust your plans based on how the market opens.
- Don’t chase gapped-up positions.
When liquidity floods back into the system after being constrained, we’re likely to see some of the biggest upside moves of the year.
Which lays the groundwork for another big week of earnings reports…
Looking to take advantage of this week’s earnings calendar?
There’s only one place to start…
Last season, my Earnings Edge system delivered 100 winning trades in a row.*
But if you’re tired of hearing about these wins after they happen…
There’s only one way to fix that:
Sign up for our Earnings Edge Workshop this THURSDAY at 10 a.m. EST.
Happy trading,
Ben Sturgill
*Past performance does not indicate future results
