It’s Not Reflation, It’s Inflation!

May 28, 2021

Dear Trader

Stocks drifted higher as we head into Memorial Day weekend. 

The major indices were unfazed by the data released before today’s open, which came in as expected…

But that’s because everyone watching the reddit traders piled back into meme stocks and squeezed those who are short shares in AMC. 

There’s always something moving and luckily we were able to follow Hot Money into TLRY calls yesterday and close out for a 218% gain.

We do have a position that expires at the close of today’s market.

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 going into the 3-day weekend and market bias continues to be higher. 

Now let’s talk shop.

Portfolio Update

Despite our big win today, we have a position expiring.

Today, this position will expire.

Under Armour, Inc. (UA) May 28, 2021, $19.50 Call (UA280514C00019500)

Unfortunately, we don’t have more time for this to play out.

There’s nothing that you need to do, and they will be removed from your account over the weekend.

Taking losses isn’t fun, but without the bitter, the sweet isn’t as sweet.

But remember…

The sweet part is making money and losses are part of the process.

Our limited risk options allow us to trade profit opportunities with greater flexibility — and much higher potential gains than buying stocks outright.

On Monday:

No trade.

On Tuesday:

Buy-to-open the VLDR July 16, 2021, $12.50/$15 call spread

Buy-to-open OUT July 16, 2021, $25 call

On Wednesday:

No trade.

On Thursday:

Buy-to-open the TLRY June 4, 2021, $20 call

On Friday:

Sell-to-close the TLRY June 4, 2021, $20 call

Right now, we’re holding:

  • Schlumberger Limited (NYSE: SLB) June 18, 2021, $40 call (SLB210618C00040000)
  • International Paper Company (IP) July 16, 2021, $65/$67.50 call spread
  • RLX Technology Inc. (RLX) June 18, 2021, $15/$17.50 call spread
  • OUT July 16, 2021, $25 call
  • VLDR July 16, 2021, $12.50/$15 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.

TLRY June 4, 2021, $20 call

Date: May 27, 2021

Outcome: Closed for a 218% gain.

Notes: These are the trades that make you feel alive. We played this perfectly and nailed it! 

Under Armour, Inc. (UA) May 28, 2021, $19.50 Call (UA280514C00019500)

Date: May 14, 2021

Outcome: Expired worthless.

Notes: We took our shot and this didn’t work out. Sometimes the bad guys win, but we’ll get them on the next one.

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 Tuesday and enjoy the 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%