I’m Stalking This Crypto as Fed Fanboys Stalk Banks

Good morning, Power Profit Traders!

At 1:30 p.m. ET today, I’ll be LIVE right here to talk about my favorite subject of late: CRYPTOCURRENCY and the absolute insanity we’re about to witness.

Or, better yet, the absolute insanity we’re about to capitalize on.

If you aren’t already attending my LIVE sessions, that means you probably missed it last week when I predicted Polkadot (DOT) would surpass its all-time highs above $49.50…

Yeah, well, the crypto is up more than 30% in the past WEEK, as of this writing.


DOT chart courtesy of Coinbase
And there’s going to be plenty MORE opportunities for even BIGGER gains in the industry very soon, so I hope to see you all at 1:30 p.m. ET RIGHT HERE to talk about how to ride the wave.

In the meantime, hop in the room at 9:30 a.m. ET for valuable trading lessons LIVE with my colleague Jeffrey Beamer, and continue reading for the bank options on my radar after yesterday’s Fed announcement.

Or, better yet, after yesterday’s Fed non-announcement.

Fed Fuels Bullish Betting on Financials

What I mean by a Fed non-announcement is — the central bank yesterday said they’d start tapering their “easy money” policy later in the month ($15 billion each month: $10 billion in Treasuries and $5 billion in mortgage-backed securities)…

But they gave no hints to an interest-rate hike on the horizon.

There wasn’t even a clue as to when rates could rise.

The silence was met with a cheer on Wall Street, as markets rocketed higher after the Fed statement and into the close Wednesday.

It looks like the central bank news fueled some interest in bank options (pun intended), since these institutions are obviously most sensitive to interest rates.

On the Unusually High Call Option Volume list from the TG Suite Money Report tool, I found it interesting that Wells Fargo’s (WFC) $45-strike call expiring Nov. 19 was among the only non-LEAPS options on our list.

LEAPS stands for Long-term Equity AnticiPation Securities, and they’re options that expire in January up to a few years out. If you’re looking to place a long-term options bet (over the next three years, say), you’re probably using LEAPS.

By purchasing the $45-strike call, the buyers expect WFC shares to continue their run north of $45 in the short term. The shares closed yesterday at $52, in territory not charted since before the pandemic.

Citigroup (C) speculators gave themselves a bit more time for their bullish predictions to play out, buying the $77.50-strike call expiring March 18.

These calls are still out of the money (when the shares are below the call strike price), with C closing at $69 on Wednesday.

In other words, buyers of those March calls expect Citi stock to make some serious headway over the next six months, ultimately moving above $77.50.

That’s all for now, but be sure to jump in the room to catch Jeffrey at 9:30 a.m. ET, and then I’ll see you at 1:30 p.m. ET SHARP for a MUST-SEE session on the crypto explosion on the horizon.

Set your alarm!

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