Here’s why I think tech stocks really sold off

Buybacks
 
   
     
Many folks say the tech selloff was overdue, hence the correction we saw recently.

But no one is talking about the huge move tech giants made recently. 

They sacrificed buybacks for AI spending.

 
 
You see, buybacks shockingly raise the share price of stocks in the long term.

Take Google, a while back, for example, when they announced a $70 billion buyback … 

 
 
The stock jacked up months later. 
 
 
Or what about Broadcom?

After announcing a $10 billion share buyback plan…

 
 
AVGO went on a huge rally after…
 
 
If you remember… 

Trump recently hinted at a limit on buybacks for defense stocks in January, and a dip followed.

 
 
Now I’m not saying the recent decision from the tech stocks will sink them over time. 

But buybacks artificially boost prices, which in turn creates a shocking opportunity in the options market for traders like you and me.

Because it gives us the best shot at targeting a payout on repeat…

Remember I mentioned Google kicked off buy-backs last year?

Tapping this opportunity and placing quick trades would have given you the opportunity to target payouts on repeat.

 
 
What about AVGO? Same thing. 
 
 
Now there are bound to be winners and losers in trading… 

But buybacks carry a shocking amount of weight in the market and can give you the best shot at a payout week in week out. 

If you’d like to see the shocking data… Follow here for the entire story.

—Jack Carter

We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading. Past performance is not indicative of future results. From 1/1/21 through 2/3/26, the average return per options trade alert published in real time (winners and losers) is 3.13% in 3 days, with a 96.1% win rate.
   
 

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