I will keep this short. The background is down below.

$NOVA insiders bought a lot of shares since it dropped recently. This is when you can also make money if you join them in the trade. See below for theory and practical application of this trade set up. The market already reacted to this but not fully, in my opinion.

https://preview.redd.it/5m6mg7xil82e1.png?width=1297&format=png&auto=webp&s=62e3c84d323d7851d2c558efd4777f5865a274ed

I traded the following options to bet on a rise and to finance the trade partially.

https://preview.redd.it/uk6avgdxk82e1.png?width=722&format=png&auto=webp&s=b4f4c143b906eb1c7d17a4e519c148a1ef279e28

I am long this synthetic long position at a 10-3 ratio, meaning I am long 10 calls for each 3 short puts which I sold to finance the position. I am still at net debit, but much smaller if I just bought OTM calls.

The long calls are lottos which may or may not explode, but the short $4 puts are giving me long and sideways exposure to profit, as long as the stock is higher than $3.4. I picked this put strike because the insiders kept buying at these levels and there is margin of safety in the trade.

Good luck, trade small, and trade carefully.

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If you want to read the background on how insiders can show you when and how to double your money, see the original post and my follow up posts and trades. Here is a brief summary of my posts and trades:

1. VSTS - OG post, posted on 5/10/24, stock was up a max 50% from the date
2. ATEC - posted on 8/27/24 the stock is now up 50% from the post date
3. PBF - posted on 9/4/24, the stock is now down 5% form the post date

Interestingly, I made most money on PBF because I sold puts to recover the cost of the vertical spread, and I am still short $30 December puts. I made good money on ATEC even though my duration was short, and I barely made any money on the first trade on VSTS because it was a complex spread which did not work with the slow rise. This is just FIY on how you can use options but still make money in a sideways market, or lose money even if you pick the right direction, but you are wrong on duration.