Hot Gains - What’s Next?

June 11, 2021

Dear Trader

Broad markets were sluggish this week.

But that didn’t stop our hot streak by putting two more winners on the board.  

That means we’ve been able to close our 6 winning trades in a row for an overall gain of 444%! 

However, that means we’ve closed 10 winning trades out of the last 12. 

That’s amazing and take a moment and celebrate these victories. 

Life moves quickly and we often don’t take enough time to pat ourselves on the back for taking action.

Now, the CBOE Volatility Index (VIX), aka the “fear” index, is right above our key 15 levels, trading at 16.

That means there’s not much fear and market bias continues to be higher, but also choppy.

Now let’s talk shop.

Portfolio Update

Here’s a recap of what we did this week.

On Monday:

Buy-to-open the CVE July 16, 2021, $10/$11 call spread

On Tuesday:

Sell-to-close the VLDR July 16, 2021, $12.50/$15 call spread

Sell-to-close the OUT July 16, 2021, $25 call

On Wednesday:

Sell-to-close the RKT June 18, 2021, $25 call

On Thursday:

Buy-to-open the LI June 25, 2021, $25 put

Buy-to-open the LUMN July 16, 2021, $16 call

On Friday:

No action.

Right now, we’re holding:

  • Schlumberger Limited (NYSE: SLB) June 18, 2021, $40 call (SLB210618C00040000)
  • RLX Technology Inc. (RLX) June 18, 2021, $15/$17.50 call spread
  • VIPS July 16, 2021, $24/$28 call spread
  • LI June 25, 2021, $25 put
  • LUMN July 16, 2021, $16 call
  • CVE July 16, 2021, $10/$11 call spread

Joshua’s Journal

This is my journal which is a debrief of every trade closed or expired to analyze what happened, why it happened and how it can be done better — like what the military uses after missions.

VLDR July 16, 2021, $12.50/$15 call spread

Outcome: Closed for a 62% gain.

Notes: We executed this perfectly.

OUT July 16, 2021, $25 call

Outcome: Closed for a 28% gain.

Notes: We executed this perfectly for this position. There’s a few other trade structures that would’ve benefited more like a longer dated call or a spread. 

RKT June 18, 2021, $25 call

Outcome: Closed for a 12% gain.

Notes: We executed this perfectly for this position. There’s a few other trade structures that would’ve benefited more like a longer dated call or a spread. 

That’s all for today. 

Now it’s time to head to the pool with a fresh jalapeno margarita - TGIF! 

I'll have a new trade on Monday and have a great weekend.

To your wealth, freedom, and options!

Joshua M. Belanger

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%