New Money Beats The Choppy Market

June 17, 2020

On Monday, the broad market opened deep in the red, but buyers stepped in and powered higher off the lows.

This Friday is the last day June monthly options trade.

Often times we see prices drift higher during monthly options expiration week.

That is because positions need that is about to expire need to be closed or rolled further out in time.

This market activity keeps prices flat or even push higher.

While some traders are scrambling to close their positions before they expire worthless, we have locked in several winners.

In fact, we have closed out 5 out of 6 trades as double-digit gainers!

And we’re only getting started.

Hot 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.

Your Questions, Answered!

The mailbag is full, so let’s get to your most pressing questions

I am frustrated because by the time I receive the trades they are above the limit price. When I try the following day again sometimes I get in, but usually not. I have missed the last two trades!  Please advise on how to solve this. – Barbara

I can understand the frustration — I’ve dealt with it over the last 15 years in the market.

If you’re not filled at the price you entered on a day order, then that order is canceled at market close.

If you enter “good till canceled,” it keeps that order open until it’s filled or canceled.

I don’t suggest leaving orders open or using “good till canceled” when trying to get into option trades.

Once you’re filled on a trade and you want to enter GTC sell orders on price limits, you can.

Markets move — you don’t want any open orders that you forgot about to get filled.

If you still want to make the trade, you can cancel the order and replace it with a new limit price.

Your goal should always be to get a better fill price than what is listed on the buy alert.

If the price of the option goes over our buy-up-to price, you can increase the price or wait until the next trade.

So know that we always aim to accurately reflect the price at which Hot Money Traders are getting their fills in our official prices.

I send you a new trade every week Monday, typically in the morning. If you missed out, there’s more opportunity just around the corner.

Let’s jump into the next question in the queue:

Can big banks hide their options plays? -  Micheal R.

No. That is the great thing with options.

Options don’t lie!

We never know why a trader is making a bet. We do know that when a trader puts a lot of money on the line, they believe prices are going to move in their favor. That is the bread and butter of our Hot Money system.

Here’s the next question:

I am at a loss when it comes to the jargon associated with trading and stocks, options, etc.

I am still navigating my broker account and I’m having difficulty locating when to buy, let alone sell.

You have honored your word by stating you would give us a step-by-step tutorial, but these “simple” instructions are losing me.  - Robby D.

Starting anything new is going to be tough, and that’s exactly why we are here to help you shorten that learning curve.

If you’re like most, you’re likely overthinking.

All the jargon will take time. Patience and persistence are key. We will continue to provide material to help you along the way. And if something specific is confusing you, please write in your question or our support team will be able to help you.

We’re here for you and you will succeed, just stick with it.

Here’s our last question today:

What is your exit criteria? -Bob G.

When it comes to exiting a position, we always take profits into strength.

Sometimes we get prices that open much higher and create the triple-digit returns.

Other times we just get intraday moves higher that we sell into.

I’ll always keep you up to date and send you an alert when it’s time to exit a trade.

With that said, I look forward to answering more next week.

If you want your questions answered next week, make sure you email it in today at [email protected]

Talk with you on Friday.

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%