| Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we'll share some of our top trading ideas — and our biggest winners!
I'll give the self-described apes over at subreddit WallStreetBets (WSB) credit where it's due… They know how to get traders excited.
After gaining notoriety for short squeezing hedge funds in names like GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC), the online forum has been the stock market's biggest hype machine this year. And the apes, now 10.6 million strong, refuse to go away.
This time, the retail army of degenerates is hawking shares of ContextLogic Inc. (Nasdaq: WISH) — owners of the low-end online retail website Wish.com.
If you're not familiar with Wish.com, it's the kind of place where you'll find Chinese knock-offs of brand name clothes and gadgets for $5. Another $6 in shipping and three weeks later, you'll find out just how cheap this crap really is.
In typical fashion, once word got out that WISH was on the forum's hit list, the stock catapulted over 16% higher on Monday.
The momentum continued into premarket trading Tuesday, where shares surged another 7% to the upside. By Friday afternoon, shares were up about 17% for the week...
But this isn't the typical short-squeeze meme play we've grown used to from these degenerate traders…
Anyone thinking about buying WISH at this point should know what they're getting into before they're caught in a pump and dump.
Miss Me With This WISH
This time, WSB's talking points on WISH center around how much the company has been beaten up since its IPO, making the latest meme stock out to be more of a traditional buy-and-hold value play.
As of June 22, short positions only make up 6.59% of the float.
Compare that to Reddit's two biggest success stories, GameStop and AMC, which have short interest of 20.57% and 22.81%, respectively…
And that makes a squeeze highly unlikely, making this Reddit play truly just a pump and dump scheme.
Want to know how I can tell? By looking at the stock premarket, when the Reddit traders bid them up…
And then the second the market opens, the apes will come and buy as the WSB crowd dumps it.
I'm not saying to stay away entirely, but be careful. You can day trade picks like WISH, but don't get married to them… Because usually by the time you hear about them, the dump has already begun.
Don't be there to catch the falling knife…
BIG Wins
Atossa Therapeutics Inc. (Nasdaq: ATOS) continues to be a profitable performer for Blockbuster Breakout members! After taking in a spectacular 47.59% profits on ATOS between May 18 and June 4, it keeps moving up — you gotta love that!
Then on June 7, the whales were aggressively buying July monthly options, and members were alerted to take a position in the $7.50 strike call. On June 22, the stock broke out from its early June pullback and our options were back in the money.
With the July options moving into front-month expiration (the contracts closest to their expiration date in the options chain), we decided to take profits off the table before time decay started eating away at our position. A solid win considering the recent market chop!
- +30% on the first half of ATOS (July 16 $7.50 CALL)
- Entered on June 7 at $2.00 a contract.
- Exited on June 22 at $2.60 a contract
U.S. Silica Holdings Inc. (NYSE: SLCA) has seen multiple rounds of recent insider buying, which is one thing we look at when considering trades to enter in this strategy. At the end of May, Director William Kacal snapped up over $150,000 worth of shares (his second six-figure purchase that month).
And that bullish indicator didn't go unnoticed... On June 15, we saw large call buying in the July monthly options, with 5,000 added to open interest. The next morning, I put out the alert to 3D members to join the action with the SLCA July 16 $13 call.
This week, the stock came alive as shares spiked over 16% from the prior week's close, pushing the July monthlies up for a 67% win in one week!
- +66.67% on SLCA (July 16 $13 CALL)
- Entered on June 16 at $0.60 a contract.
- Exited on June 23 at $1.00 a contract
If you have a big score you'd like to share with your fellow Future of Wealth readers, email us your screenshots of the trade and/or any details you want to share at wptestimonial@gmail.com, and we'll celebrate them here!
How to Collect Market Commissions Just Like the Big Banks
As a former hedge fund and Citibank insider, I've seen how the richest traders out there are protected by a secretive system.
Regardless of how well the market was doing.
So while the "little guy" struggled to figure out which moves to make…
The big banks on Wall Street continued to dominate, using complicated technical trading methods to win over and over again.
For years, they've held this secret close, making sure nobody else could steal their advantage and use it for themselves.
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:
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