Forget the dog days of summer — it’s been a wild week in the markets.
The pits have been buzzing the last several days. It looks like the Fed and the trade war still matter, and the news has awakened the machines.
We’re now seeing a two-sided market, and volatility spiked to 20 on the S&P 500 — past our threshold of 15.
The last time we saw a spike like this in volatility, the S&P 500 pulled back 7.6% before rebounding and climbing to new highs.
Regardless, we’ve been prepared and knew things were about to get exciting.
We’re two-thirds of the way through earnings season, and despite what the financial media say, it’s been a mixed bag.
Add that to a slowing economy, compressed rates, uncontrollable spending, trade wars and a hostile political environment…
And the situation looks more grim than ever.
Despite all this, we could see markets come back alive.
Hot Money continues to thrive and take home winners.
That’s been our promise at Hot Money Trader — to navigate you through any market profitably!
Let’s talk about how we did this week…
On Tuesday, we bought to open the Gannett Co. Inc. (NYSE: GCI) Aug. 16, 2019, $10 calls.
We are sitting on a 77% profit right now. Prices have been bucking the overall market trend, and I want to ride this a little longer before getting out before earnings next Tuesday.
On Thursday, you sold to close your ANGI Homeservices Inc. (NASDAQ: ANGI) Aug. 16, 2019, $15 call for a 22% gain!
ANGI Homeservices Inc. (NASDAQ: ANGI) Aug. 16, 2019, $15 call
Date: July 30, 2019
Reason: Our HMT spiked with short-term money betting prices would jump higher. With earnings two weeks away, it provided us enough time to follow behind the hot money.
Outcome: We exited for a 22% gain!
Improvements: We left profits on the table with not being able to get our trades executed at our $0.75 limit, which would have netted a 77% gain. That’s my fault. But despite that hiccup, we still took this home and didn’t let a winner turn into a loser.
Gannett Co Inc (NYSE: GCI) August 16, 2019, $10 calls
Date: July 30, 2019
Reason: Our HMT spiked with Smart Money flowing into near and further out expiration call contracts; betting prices would soar higher. A few days before picking up that activity WSJ reported that a possible buyout was in talks with GateHouse. With that rumor and our tracker picking up that activity, it made sense that we could foresee a bidding war.
Outcome: Our trades executed for a 122% gain!
Improvements: We executed flawlessly. We got a spike higher against a weak market and closed the trade out ahead of the earnings event next week.
Enjoy your weekend and those gains — you’ve earned them!
My team and I will have a new Hot Money trade this Tuesday.
To your wealth, freedom & options!
Joshua M. Belanger