The market continues to bubble higher.
The S&P 500 will close the week at all-time highs… again.
Most think this money train is about to crash, but there’s still more MONSTER momentum in stocks.
And there doesn’t seem to be an end in sight.
Precious metals have been soaring too, which allowed us to put winning trade on the board.
We do have an options position that expires today.
There’s nothing you need to do, but I will address those in a few minutes.
The fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX) is holding at 23.
This is a point higher than last week, but keep in mind the S&P 500 is higher too.
Volatility sits at the lower end of that March peak.
But is elevated compared to levels exact price levels in the S&P 500 before the corona crash.
So that means markets will continue to whip around.
Next week is the unofficial end to “summer” trading as we head into Labor Day weekend.
We usually see slower trading during this week as we gear up for more wild market action.
And there’s will be a lot of fast profit opportunities coming our way, so be prepared.
That’s my promise to you: to navigate you through any market easily and profitably.
One of our positions is expiring today that fell short of our profit target.
- Snap Inc. COM (NYSE: SNAP) Aug 28, 2020, $23.50 call (SNAP200828C00023500)
Unfortunately, we don’t have more time for this position to play out.
Taking losses isn’t fun and can be painful. That is why position size is so important.
There’s nothing that you need to do, and they will be removed from your account by Monday morning.
Our limited risk options allow us to trade profit opportunities with greater flexibility — and much higher potential gains than buying stocks outright.
And we’ll have a brand-new batch of trades coming in a few weeks for another shot at quick profits. (So, stay tuned!)
On Monday, we added our newest position:
- Buy-To-Open the ANGI Homeservices Inc. (NASDAQ: ANGI) Sept. 18, 2020, $15 call (ANGI200918C00015000) up to $0.90 per contract or better, for the day.
- Sell-To-Close the Cameco Corp. (NYSE: CCJ) Sept. 18, 2020, $12 call (CCJ200918C00012000) at the market.
Right now, our open positions are:
- Nordic Amer Tankers (NYSE: NAT) Oct. 16, 2020, $5 call (NAT201016C00005000)
- ANGI Homeservices Inc. (NASDAQ: ANGI) Sept. 18, 2020, $15 call (ANGI200918C00015000)
Now we wait and let the market come to us.
If ANGI doesn’t soar earlier next week, we will cut this going into a long weekend.
And I’ll be keeping you updated every step of the way.
Cameco Corp. (NYSE: CCJ) Sept. 18, 2020, $12 call
Date: Aug. 03, 2020
Reason: Our system triggered a buy signal after $11 million in notional value was placed, that would only profit if shares soared higher by Sept. 18 expiration.
Outcome: 5% gain.
Notes: You executed this perfectly. We exited the position into strength as we sold. Unfortunately, this took too much time to play out, which decayed at our premium paid. If the move occurred a few weeks ago, this would’ve been a double-digit gain. Putting wins on the board what’s important, the profits will follow.
Snap Inc. COM (NYSE: SNAP) Aug 28, 2020, $23.50 call
Date: Aug. 10, 2020
Reason: Our system triggered a buy signal after $6.5 million in notional value was placed, that would only profit if shares soared above 23.50 by Aug. 28th.
Outcome: Expired worthless.
Notes: We’ve profited from activity in this name before, but this didn’t play out as we anticipated. It’s frustrating to see prices drift waiting for that big spike higher. Shares finally spike higher the last two days, but we didn’t have enough time. I need to tweak our plan and not let options over 75 cents expire worthlessly.
The slow grind in August hasn’t been favorable, but we’ll get back to our winning ways.
I’m looking forward to answering your most pressing questions this Wednesday.
If you want yours included, send yours now to [email protected]
Have a great weekend and I’ll have a new trade for you on Monday.
To your wealth, freedom, and options!
Joshua M. Belanger