Windfalls by Trade Aptitude

Yesterday’s results: No trades triggered.

Today’s Best S&P Futures Turning Points: Buy 5996.50 stop 5992.75. Short 5993.50 stop 5997.25 if price retraces up from below. 

The World Index: (+100/-100) soars from -50 to +36 with most major world markets Bullish. 

Catalysts: Nothing on the economic calendar.  

Quick Tip: Windfalls

Not nearly enough, but on occasion your trade becomes a windfall. Not so much in day trading but swing and position trading for sure. Maybe you bought NVDA 2 years ago and held on. Windfall!

Our swing trading team experienced a remarkable windfall trade last week. The strategy we used had to do with Unusual Options Activity. Simply put, these are huge bets on unlikely outcomes. The concept is that anyone who can bet that big must know some non-public information. 

Following the chart above you’ll see we uncovered a Smart Money bet on 10/21. $2.1M was bet on this $160 stock exceeding $200 in the next 3 weeks. You could have bought that option for $2.70 per share. Earnings were great, the stock closed at $290 on Friday, for a 3200% gain. One single contract with $270 of risk is worth $9000 today. Windfall!

What should you do with the gain? Pay yourself.

If you’re like many retail traders you are focused on growing your trading account so you can increase your risk and ultimately your expected reward. Taking a “paycheck” from your trading account seems like taking a step backward.

But the trading account is intangible. The figures on the statement don’t mean the same to you as a tangible reward. Psychologically, you need to be rewarded for a job well done. Make these wins real. Spend some of it!

Our trading teams focus on multiple strategies for day trading futures and high-probability candidates for swing trading options. Maybe you'll fit right in. You can try either or both risk-free.

Trade Fearlessly,

Mike Siewruk

P.S.  Feel free to pass this along to your trading buddies. Share in the wealth!