I’m about to clue you in to the most reliable trading pattern on the planet.
Surprisingly (or perhaps not so surprisingly) most people haven’t heard of it.
You’ve heard the saying, “What goes up, must come down”. There’s even a song by Tyrone Davis proclaiming it. It’s true for many things in life. It’s usually true for stocks. Nowhere is this more true than with a little known characteristic of a stock options value.
I’m talking about Implied Volatility (IV). This is the market’s forecast of how much (not what direction) an option is likely to move.
Although IV crush into earnings is a virtual guarantee, the degree of crush is difficult to anticipate. What isn’t difficult to anticipate is that IV will tank after the announcement. This happens each time, every time.
Welcome to the most reliable pattern in trading.
Just when we thought we were done with 2020… we got 2020 2.0.
I’m talking about the Delta variant, of course – the new, more contagious, twice as infectious strain of COVID-19 that now makes up 83% of new cases in the U.S.
To be clear, nobody knows if COVID-19 will return to 2020 peak levels. However, even the prospect of things getting worse before they get better again is enough to move the markets.
We already have proof of that.
On July 8, 2021, Japan issued a national state of emergency in Tokyo to span through the completion of the Olympics due to a surge in COVID-19 cases. The S&P 500 dropped 1.5%+ in response.
Last Friday and this Monday saw the S&P 500 drop 3% with COVID-19 surge news.
Tuesday, the S&P 500 bounced with a rise in bond yields.
The markets are jumpy – and any further negative Delta variant news will likely drop them.
That means a lot of volatility. And volatility spells opportunity for us.
Here’s a fast-moving “Delta” play that could make you 500% in the next month…
“It’s that time of year, where the world falls in love. Every stock you see seems to… GAP BIG!”
Yes, it’s Christmas in July with earnings season now upon us. Hands down, earnings is the best catalyst of consistent and tradeable patterns. If you know how to trade them, you can drop some Christmas cheer right in your trading account any time of the year.
Earnings are concentrated in January and every three months after. Do the math and you’ll discover that July is one of the months with a concentration of earnings announcements.
And this July features a few especially juicy ones.
In fact, today I’m going to give you a sneak peek at a couple of the earnings trades I’m featuring in Operation Surge Strike this month…and show you exactly when and how to profit.
Here’s what to do…
How We Look “Between The Gaps” to Find Precise Earnings Profits
Every listed company in the stock market must announce earnings every 3 months. With the analyst community looking at the financial data of companies with a magnifying glass, the slightest over or under performance can lead to gaps in the stock price immediately after the announcement.
Stocks gap at earnings all the time. Here are a few from last earnings period:
As traders, we strive to win 100% of the time…
But in this business, even the best of the best inevitably lose sometimes.
So last week, I explained my strategy to fix losing trades without adding extra cost or risk.
And this week, I’m back with part two – answering your most asked questions so that you’re ready to fix the sore spots in your portfolio.
Check it out here…
Tom Gentile here.
Until 2020, “SPAC” was practically considered a dirty word to serious investors.
Yet over the last year and half, some of America’s top startups and private businesses have made the jump onto the stock market thanks to their partnerships with such organizations.
Many others are in talks to do the same, including personal finance giant SoFi and DNA test company 23andMe.
To fully illustrate just how far this shift has come, look back in 2009… There was only one single SPAC active at the time – and today, there are nearly 550!
I’m sure you’ve heard about this SPAC boom by now…
Meme stock? What’s a meme stock? That’s what I said when I first heard the term.
The Merriam-Webster dictionary defines “meme” as:
- An idea, behavior, style, or usage that spreads from person to person within a culture.
- An amusing or interesting item (such as a captioned picture or video) or genre of items that is spread widely online especially through social media.
If you’ve ever been on Facebook or any other social media platform, you’ve seen memes. And probably shared a few yourself.
This week, I want to show you my preferred strategy for trading stocks like AMC and GME.
You may have noticed that most of the folks who made money on AMC got in before Labor Day.
And since then, apart from a few tiny bumps, nearly everyone else has been eating losses.
That’s why, in my latest video, I’m revealing how I minimize risk while grabbing a bite of these high-volume surges.
Sometimes, it’s hard to know where to even begin with meme stocks.
So let me give you a few quick profit pointers right here…