It feels like Deja-vu because just a few weeks ago stocks were at all-time highs…
And then we saw a double-digit drop like mid-February.
The July surge has been a total wash… so, what next?
Well, next Wednesday will be the last trading day of the month/quarter — so wake me up when September ends.
Here are some interesting stats to help keep things in perspective…
After seeing stocks roar higher from the March lows, we saw a sharp pull-back in June that lasted 21 days in the S&P 500.
After that shakeout, stocks climbed higher.
Yesterday’s drop lower marked the 21st day of the most recent pullback and why we could be seeing buyers stepping in.
But I want to be frank, the stock bubble has popped.
The last six months in the market have been extraordinary, but only a handful of stocks have benefited.
60% of small businesses have closed their doors forever.
I'm not saying we're going to crash, but we're also not going see stock moonshot as we did in July and August.
The FOMO euphoric buying is over.
Now, the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX) is at 27. That means volatility is 2x the normal and we will see a fast-two-sided market.
This is great news for us because uncertainty creates more opportunities.
It’s what we call a trader’s market and soon you’ll be stacking more triple-digit gains as we did last week in TSM and MLCO.
Let’s talk about our newest positions this week.
- Buy-To-Open the Vonage HLDGS Corp. (NASDAQ: VG) Dec. 18, 2020, $11 call (VG201218C00011000) up to $1.00 per contract or better, for the day.
It’s not typical for us to jump into a longer-dated play, but New Money was likely jumping into this expiration to have enough time to play out.
Right now, we’re holding:
- Nordic Amer Tankers (NYSE: NAT) Oct. 16, 2020, $5 call (NAT201016C00005000
- Melco Resorts & Entertainment (NASDAQ: MLCO) Oct. 16, 2020, $20 call (MLCO201016C00020000) - 50%
- Regions Financial Corp (NYSE: RF) Oct. 16, 2020, $12 call (RF201016C00012000)
- Vonage HLDGS Corp. (NASDAQ: VG) Dec. 18, 2020, $11 call (VG201218C00011000)
Now we wait and let the market come to us.
This sell-off has put us behind the Eightball, but we have time.
Patience and persistence are key, and I’ll be keeping you updated every step of the way.
Congrats on Your Wins!
Markets move quickly and often we find ourselves moving onto the next trade without looking back.
However, when we have the chance to take a big profit — it’s important to take a second and celebrate your victories.
Here’s what some of you are saying:
“I was only able to buy 1 contract of TSM and I made close to $200. Thank you for giving me the chance to learn options trading and a big break to get in this program.” — Syed
“I made $2,380.05 from the TSM trade” — Daniel
Congratulations again on your gains!
We’re a group of outsiders who need to stick together to beat Wall Street at their own game.
I’m looking forward to answering your most pressing questions this Wednesday.
If you want yours included, send it 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
Executive Publisher & Founder