Buckle Up - October Trading has Begun!

October 2, 2020

What a wild a move to finish the week, but that’s volatility for you.

The overnight news on President Donald Trump rocked markets sending the S&P 500 futures down 1.84% in 39 minutes.

The reaction was all driven by algorithms, which was a kneejerk reaction.

Stocks are roaring back, but we haven’t turned green because there hasn’t been a deal made for more coronavirus aid.

As I’ve mentioned before that uncertainty creates more money-making opportunities for us.

Despite the ups and downs of the market this week, you were able to lock in a double-digit gain to start October.

Now, the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX) is at 27. That means volatility is 2x the normal and we will continue to see these fast-two-sided markets.

That’s a great way to start October as we’ll continue to see fast two-sided markets like this week. 

But remember, options have the power to ride through the ups and downs of market swings.

Today’s news is another bump in 2020’s road…

So, let’s use this volatility to our advantage and continue to stack more wins going into the end of the year.

Portfolio Update

On Monday:

  • Buy-To-Open the Stitch Fix, Inc. (NASDAQ: SFIX) Oct 9, 2020, $28 call (SFIX201009C00028000) up to $0.92 per contract or better, for the day.

On Thursday:

  • Sell-To-Close the Stitch Fix, Inc (NASDAQ: SFIX) Oct 9, 2020, $28 call (SFIX201009C00028000) at the market.

Right now, we’re holding:

  • Nordic Amer Tankers (NYSE: NAT) Oct. 16, 2020, $5 call (NAT201016C00005000
  • Melco Resorts & Entertainment (NASDAQ: MLCO) Oct. 16, 2020, $20 call (MLCO201016C00020000) - 50%
  • Regions Financial Corp (NYSE: RF) Oct. 16, 2020, $12 call (RF201016C00012000)
  • Vonage HLDGS Corp. (NASDAQ: VG) Dec. 18, 2020, $11 call (VG201218C00011000)

Now we wait and let the market come to us.

Patience and persistence are key, and I’ll be keeping you updated every step of the way.

Congrats on Your Wins!

Markets move quickly and often we find ourselves moving onto the next trade without looking back.

However, when we have the chance to take a big profit — it’s important to take a second and celebrate your victories.

Here’s what some of you are saying:

“Thanks for another winner. I exited on Wednesday for +50% on SFIX calls.” — J.R.

Congratulations again on your gains and taking action.

We’re a group of outsiders who need to stick together to beat Wall Street at their own game.

After-Action Report

  • Stitch Fix, Inc (NASDAQ: SFIX) Oct 9, 2020, $28 call (SFIX201009C00028000)

Date: Sept. 28, 2020

Reason: Our system triggered a buy signal after an $18.4 million Hot Money bet was placed wagering those prices would only profit if shares soared higher in the coming days.

Outcome: 20% gain.

Notes: You executed this perfectly. We exited the position into strength and locked in our gains. Unfortunately, our first profit window was too short, but we didn’t panic. Putting wins on the board is what’s important; the profits will follow.

I’m looking forward to answering your most pressing questions this Wednesday.

If you want yours included, send it to [email protected].

Have a great weekend, and I’ll have a new trade for you on Monday.

To your wealth, freedom, and options!

Joshua M. Belanger
Executive Publisher & Founder

Joshua M. Belanger
Joshua Belanger is founder of CounterVest and the editor of Hot Money Trader. He has been providing ordinary investors blockbuster returns since 2008. In 2018, the average return of Hot Money Trader beat the markets by over 15%