How CEO Watcher Works

An explainer about how we know which insiders always buy their stock before it pops

Tons of websites/newsletters track insider trades, but CEOWatcher is the only one that calculates the historic returns for those insiders so that you can know which insiders tend to buy before the stock price pops. We are currently tracking over 3000 insiders every single day (and always adding more).

We can do this because of our main project, Yellowbrick Investing, which is a social stocks platform where you can connect your brokerage, find other top investors, see their portfolio and returns, and get notified when they make a new trade (make sure to sign up for that if interested). We spend thousands of dollars per month on stock data APIs and spent a year building out our internal Stock Data Service that lets us easily calculate the returns for insiders.

Terminology

Returns - The weighted average return over a given time frame

  • Overall Returns - The weighted average return for all of the insider’s trades from the day they made the trade until the day this email is sent

    • Calculate the price when the email is sent / price the insider paid to get the overall return for each trade and then take the weighted average of all of those returns

  • 1-Year Returns - The weighted average return for all of the insider’s trades from the day they made the trade until one year later (note: a trade needs to be at least one year old to have this calculation)

    • Calculate the price one year after the purchase / price the insider paid to get the 1-year return for each trade and then take the weighted average of all of those returns

  • 90-Day Returns - The weighted average return for all of the insider’s trades from the day they made the trade until 90 days later (note: a trade needs to be at least 90 days old to have this calculation)

    • Calculate the price 90 days after the purchase / price the insider paid to get the 90-day return for each trade and then take the weighted average of all of those returns

Win Rate - The percentage of trades that are profitable for the given time frame (overall, 1-year, 90-days).

Other Yellowbrick Products

Yellowbrick - Social stocks platform to follow other top investors, see their holdings and returns, and get notified when they make a trade (definitely sign up for this)

CEO Leaderboard - The top 100 CEOs based on their 1-Year Returns

CEODough - Type in a ticker to see how much money the execs make

Politician Watcher (coming soon) - Tracking the top Politician Trades

Hedge Fund Watcher (coming soon) - Tracking the top Hedge Fund Trades

Stock Alerts (coming soon) - Get notified when a stock reaches your target price

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