| | | | NEW MONEY CREW
WEEKLY RUNDOWN Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we'll share some of our top trading ideas — and our biggest winners — from the New Money Crew!
Today, I brought my flamethrower for another edition of "I Call BS." And I'm calling BS on everyone involved in this sham lawsuit aimed at Roaring Kitty from the WallStreetBets subreddit…
Keith Gill, aka "Roaring Kitty," one of the loudest voices pushing the GameStop Corp. (NYSE: GME) frenzy — got slapped with a lawsuit accusing him of securities fraud... Simply because a large trader sold about $200,000 worth of naked calls on GME…
And lost big time. Boo-frickin'-hoo!
A naked call is an aggressive options strategy where an investor sells call options without actually owning the underlying security. In a strategy like this, the investor exposes his or herself to unlimited losses if their bet that the stock will fall — or at least not move above a certain price point — is wrong.
To be able to sell that amount of naked calls, you need to have a seven-figure account at minimum to get the margin cover. Basically, the big dog trader was looking at GameStop, still below $100 when he sold the calls, and he bet against its rise.
But GME exploded and the big dog got burned. He blew up his account and had to buy back the shares well above $400…
I mean, sure, ouch… but again, boo-frickin'-hoo! In case you guys didn't know this, there's risk involved in trading. Sometimes a lot, sometimes a little — but always some level of risk.
So, of course, Roaring Kitty was slammed with a lawsuit that accuses him of using his social media influence to advertise the stock, causing it to inflate, while misrepresenting himself as an amateur investor. This guy is a Certified Financial Analyst (CFA) and knows what he's talking about. He was hosting three-hour segments breaking down stocks for like 14 viewers. That's not a big audience because it's not something many people will sit through.
When GameStop skyrocketed, obviously, he got more popular. So some firm is suing him because they sold these extremely risky naked calls. I don't know about you but the last time I lost money on a stock, I didn't go sue someone because they might have had a hand in moving it in a direction I didn't want.
Now we're having hearings in front of Congress and the House finance committee with people who know nothing about the markets or how this all works.
It's BS!
Listen, if you're playing along with these Reddit traders, what are you doing? None of this is good for the market or retail traders like us. Wall Street is rigged. There are crooks out there, no doubt. And Robinhood, "the platform for the little guy," just wants your money so it can go public and cash out, leaving you holding the bag.
The little dogs like us, like Roaring Kitty, as soon as we bark up a stock report, we get slammed with lawsuits. But when the big dogs — the institutions… the Citadels… the Melvin Capitals… the Chamath Palihapitiyas — when they bark up a stock, they get the bone… they get rewarded.
Palihapitiya, the CEO of Social Capital and a big SPAC sponsor, went on Twitter and asked his 1.3 million followers what stock he should buy. Amid the mania, they told him GameStop, so he bought calls. And guess what… he went on CNBC, barked up the stock and his calls doubled the next day.
But Roaring Kitty can't go on a forum or YouTube to talk about stock analysis he did himself! How is that fair?
It's not… it's BS.
How To Grab Consistent Winners Overnight
From 1993 to 2021, you would have lost 10% of your money buying and holding the S&P 500 during the day…
Yet if you'd bought at the close and sold again right at the open, anyone could've seen an 812% increase in their investments.
Where did all the gains come from? Overnight moves!
And one former $700 million hedge fund trader just revealed how he's exploiting these overnight moves on a handful of stocks every single day.
Click here to see the stock he's trading next.
Trade This, Fade That: Semiconductors Edition
Since the coronavirus crash of February and March 2020, tech stocks have been on a tear. And there's a subsector in tech that's crushing it: semiconductors. And New Money Crew-mate Joshua Belanger has a trade idea focusing on one semiconductor stock to trade… and one to fade…
The VanEck Vectors Semiconductor ETF (Nasdaq: SMH) just broke out to a new all-time high. And Josh's two stocks this week are in this exchange-traded fund that holds the top semiconductor stocks in the world.
◼ FADE THAT: Intel Corp. (Nasdaq: INTC)
Intel just replaced its CEO, which isn't typically a good sign. It did give the stock a bit of a pop, but then it dropped again. Not to get too technical, but if you look at INTC's chart dating back say... three years, it's dead money!
Compare it to the SMH chart over the same time period and it's not even close. So Josh says Intel is a sell — a fade! So many people will make the mistake of looking at Intel's stock as sort of a value buy because it's a well-known company in a strong sector. But as Josh says, when you follow the money… there's no reason to trade this stock right now.
TRADE THIS: STMicroelectronics NV (NYSE: STM)
So while Josh thinks Intel is a pig stock, he's got his eyes on STM, a hot little number he has discussed recently after seeing people buying a lot of out-of-the-money calls. STM has great relative strength so where Intel is going nowhere, this stock has tailwinds working in its favor.
If you look at the March 19 expiration, $45 strike calls, there are almost 3,000 open contracts between $1.15 to $1.25 — a decent amount of money. There are also more than 500 call option contracts open on the $50 strike… lottery tickets, more or less.
And we've seen this before. So if you decide to enter into calls, sell into strength on big pops because these $1.15 contracts could quickly double before dipping back. So keep an eye on this and as Josh says, follow the money!
Bang, Buy, Bust: 2 NYSE Stocks To Watch — and a Trade I lost
Guys, I think it's time for another installment of Bang, Buy, Bust — and this edition has me focused on two NYSE stocks — and a Wall Street darling that nearly destroyed me!
First, the stock I want to bang for quick profits… oh baby! While I want to get in but then move on from this stock quickly, I have a feeling profits from Churchill Capital could last a bit longer..
Churchill Capital Corp. IV (NYSE: CCIV) is a special purpose acquisition company (SPAC) that was founded by former Citigroup executive Michael Klein. Rumors of a merger between Churchill Capital and Lucid Motors pushed CCIV's stock up more than 300% since January.
I myself have already done some bull call spreads for February and March… and they're paying me quite nicely right now.
Now for the stock I want to buy and hold for some time… this one might be a bit of a shocker — especially considering we're still in the middle of a global pandemic... Carnival Cruise Line.
It might sound a bit outlandish, but investors are starting to take notice, and this cruise company might finally be worth taking a look at. Carnival Corp. (NYSE: CCL) was up nearly 20% for the week as of Friday morning, with a ton of short-dated call buying.
It's crazy to think investors want to buy cruise liners right now, but you have to remember that Wall Street is always forward-thinking, so it could be time to make a move on CCL.
The last stock — something I'm thinking of calling the worst stock of February 2021 — busted my account horribly last week. Yes, even I lose money from time-to-time...
It happens to the best of us.
Despite redditors trying to create another GameStop moment, pot stock names like Tilray Inc. (Nasdaq: TLRY) just aren't doing it for me right now.
The Canadian cannabis company has cratered after a massive rally, causing me to lose some of my investment…
Now all I want to do is bust out of this stock to avoid further losses, take a shower and forget this trade ever happened...
Signing Off
If you're looking for more compelling trade ideas and stock market musings to read and help you prepare for what lies ahead, here's what other experts at WealthPress are saying:
Lance Ippolito
New Money Crew
|
|
| | | | | A WealthPress Publication |
|
| | |
Disclaimer & Disclosures: The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
Past performance is no guarantee of future results. There is a high degree of risk involved in trading. For our full disclaimer, visit here.
Brought to you by WealthPress. |
|
|
|
|
0 Response to "Weekly Rundown: Robinhood, Reddit, Congress and Lawsuits — I Call BS!"
Post a Comment