We all know Congress creates laws for us but has been known to exempt its members from the impacts of the very legislation they’ve passed
Doesn’t seem right, does it?
One of those laws concerns insider trading.
Yes, Congressional members are allowed to make trades in stocks they know will be affected by decisions Congress itself is making.
Quite honestly, I am shocked not all of them take advantage of this.
Here are the top-seven Congressional members’ wealth increases from 2008-2018:
At No. 1, Grace Napolitano, made over 11,000%! She turned $8,000 into almost a million dollars.
Nice job — if you can get it.
Well, we have the next best thing here at Option Pit.
Frank Gregory is our K Street insider and he has his finger on the pulse of Washington.
Thanks to his web of contacts inside the Beltway — and on Wall Street — he knows the inisde story before the rest of us do.
Once Frank has the scoop, he brings the stocks in the sector involved to Andrew Giovinazzi, one of the best traders I know, and they formulate an options strategy to take advantage of the market reactions.
Do not miss this event that could fundamentally change your profit potential — forever.
In the meantime, check out my trade idea in Roblox (Ticker: RBLX).
I am seeing a hammer on the Roblox (Ticker: RBLX) stock chart:
This hammer could be signaling an end to the downtrend that started on June 4 when RBLX traded a high of $103.87.
It closed yesterday at $76.19. That’s down 26%.
If RBLX trades higher this morning, I will buy the Aug. 06 76-strike calls trading at an implied volatility of 58.44. To bring my cost down, I will sell the Aug. 06 83-strike calls with an implied vol of 61.33.
I would like to pay $2 or less for this 7-point spread but will probably have to pay up to $2.10.
I will take my losses if the spread trades down to $1.50 and begin to profit take at $3.30 and higher.
- I recommended a call spread in Lowes (Ticker: LOW). The chart looked to me like the stock was breaking out. Instead it opened down $4.50 on Monday morning. So no trade, but also no loss.
- In Riot Blockchain (Ticker: RIOT), I recommended a call spread also and that stock opened up over $4. I waited and added the Aug. 06 32.50/39 call spread paying $2.00. It is down a bit, but I think RIOT is going to trade higher. If the stock trades below yesterday’s low of $30.47, I will take my losses and bail out.
Thanks for Reading … See You Next Tuesday!