Q&A - The Monster Jam Kicks Off

June 10, 2020

Markets are swinging back and forth after the Federal Reserve kept interest rates near zero.

The FOMC also see interest rates staying near zero through 2022.

The market activity on FOMC meetings reminds me of one of those Monster Jam truck rallies.

The increased volatility is due to algorithms reacting to the prepared statement and press conference. 

Yet, today’s volatility provided you another double-digit gain!

We Sold-To-Close the Fox Corp. (NASDAQ: FOXA) July 2, 2020, $27 put (FOXA200702P00027000) at $0.40 limit or better, for the day.

Your limit order should’ve triggered and now those profits are realized gains.

Congratulations on another big winner!

Your Questions, Answered!

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

Hi Joshua,

What's the difference between Hot Money Trader and unusual options activity? Seems like both send tips when big money is moving. - Micah B.

Hot Money Trader scans for directional high-impact trades that can generate a double-digit return 7 days or less.

The larger the trade, the better probability of it becoming a winner because as noted before it shows the amount of conviction.

We also focus on trading options that are less than $1.00.

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

Hey Josh, 

Vale is only at $9.93. The option is only worth $0.58 It's a 10 Call. How come you are getting out now? -Joanie S.

It’s a common question, but options are a leveraged investment vehicle.

When we time the trade right and have a double or triple-digit gain on our hands, I take my profits.

If you look at this underlying, it’s a volatile stock.

We could have seen our winning position turn into a loser.

The final piece of reader mail for today:

I'm not sure why you selected TECK as a new money club recommendation, the economies seem to be slowing down, with oil and other natural resources overabundant.  With Corona Virus in effect that should further slow down most economies.  I'm invested in TECK but I don't see the possible rise of the stock or option that you’re predicting. -Bob K

The reason we entered the trade was that we saw a high-impact trade entered.

The trade opened only made money if prices of TECK shot higher in the coming weeks.

All of those things you mentioned are true, but the market is also forward-looking.

We were sitting in the red on this position for a little while as we waited for prices to go in our direction. 

But as you saw last week, shares of TECK shot up 25%, and the options contracts we were in doubled in price.

This the power of the New Money Monitor and why It’s been a successful approach for me for the last 15 years.

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%