Hot Money Continues To Sizzle

June 19, 2020

Happy triple witching Friday!

Back in the days of trading on the floor, today used to be a busy day known because it’s a triple witching day.

Triple witching is when index futures, index options, and stock options expire on the same day (on the third Friday in March, June, September, and December).

These positions that expire need to be rolled forward, which is why we see odd price action similar to a leaf blowing around.

The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), is at 32.

That means volatility is 2x the average and we could see a another quick drop lower.

We still have the dueling news cycles keeping the herd guessing — reopen versus the second wave.

Either way, we need to avoid getting sucked into the news vortex and keep our eyes on the prize.

There’s too much happening in the market that can feed our biases and potentially poison your trading.

We’ve had a hot hand with closing 5 out of 6 trades as double-digit gainers!

This adds up to over 350% in REAL gains in the last month!

And we’re only getting started.

New Money continues to flow and markets continue to be buzzing.

There’s been no better time to be active in the market than now.

We’ll continue to play this action to our benefit.

Portfolio Update

On Monday:

  • Buy-To-Open Bilibili Inc. ADR (NASDAQ: BILI) July 17, 2020, $45 call (BILI200717C00045000) up to $0.60 per contract or better, for the day.

On Tuesday:

  • Sell-To-Close Bilibili Inc. ADR (NASDAQ: BILI) July 17, 2020, $45 call (BILI200717C00045000) at the market.

Right now, we’re holding these positions:

  • GOODYEAR Tire & Rubber Co. (NASDAQ: GT) July 17, 2020, $5 put (GT200717P00005000)

After-Action Report

Bilibili Inc. ADR (NASDAQ: BILI) July 17, 2020, $45 call

Date: June 15, 2020

Reason: Our system spiked on sure bet activity that these options would pop higher in the coming days.

Outcome: Closed for 50% gain.

Notes: We played this exactly as we should with selling into strength. Looking at today’s prices, we definitely left money on the table. But, that is hindsight and it could have turned into a loser. Some readers are frustrated with leaving money on the table by taking profits too soon. It's better to get out early and avoid the ups and downs. It never hurts taking profits too soon. Any new money you make is more than the money you had. Managing risk is an essential piece of being successful. Anyone can put on a trade, it's how you manage it.

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

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

Your privacy is important to us and I’ll never reveal your full name or email when answering questions or sharing feedback.

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

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%