11,000%!

Hi Shoppers,

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.

You can learn all about the two of them tomorrow night Thursday at 8:00 ET at their free webinar.

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).

Un-Bloxed

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.

Trade Recap

      • 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.

Don’t forget to join Frank and Andrew tomorrow at 8:00 pm EST. It is going to be awesome.

Thanks for Reading … See You Next Tuesday!

Licia Leslie

Population Freak Out

Hi Shoppers,

For the first time on record, the U.S. could experience a decrease in population, according to reports

Apparently during recessions the birth rate goes down, but historically rebounds.

After our most recent birth rate peak in 2007 (which wasn’t even close to the birth rate of the 1960s), we had a recession and economic expansion, but our birth rate has not regained its footing.

Looking at the chart above, we have actually fallen off the cliff.

“The economy of the developed world for the last two centuries now has been built on demographic expansion,” Richard Jackson, president of the Global Aging Institute, a nonprofit research and education group, told the Wall Street Journal. “We no longer have this long-term economic and geopolitical advantage.”

Well, the good news is, with all that extra time not on folks’ hands not raising children, they can tackle a range of home improvement projects.

Which gave me a great idea in Lowes (Ticker: LOW)!

Highs for LOW

Look at the breakout on the LOW stock chart:

I think LOW is heading back to at least $205 — and I think it will happen this week.

So, if it opens and trades higher this morning, I will buy the July 30 200/205 call spread and pay up to $1.80 for this five-point spread expiring on Friday.

Time will be running against me, so I need the stock to move higher quickly.

I will take my losses around $1.25 and begin profit taking around $3 area.

Thanks for Reading … See You Next Tuesday!

Licia Leslie


They Know Their Stuff

Hi Shoppers,

Timing is everything right?

Especially in trading.

Well, it’s the perfect timing for the debut of our dynamic duo Frank Gregory and Andrew Giovinazzi and they’re new webinar … Hedge Fund Secrets Revealed.

And at 8 p.m. EST on Thursday, July 29, they’ll unveil a trio of trading secrets that have the potential to transform your profit-making ability — for life.

>> Register at no cost here. <<

These insights are straight from people who have been on the inside.

If you haven’t met Frank, he’s a former high-powered DC lawyer AND Wall Street exec (who happened to post a perfect score on the LSAT) …

He keeps his eye on the slimy politicians I love to loathe over in his Power Moves letter — and tracks how DC decisions send ripples through the market.

Andrew then arrives, with his trading expertise, to find the perfect option strategy to take advantage of these stock movements.

Together they meet at the intersection K Street with Wall Street.

And you’ll be able to check them out LIVE Thursday night in their all-new event!

PINS for the Win

In the meantime, take a peek at my trading record

If you followed me into my last trade in Pinterest (Ticker: PINS)you’ll know I locked in a 225% gain this week.

What’s next …

A RIOT

Riot Blockchain (Ticker: RIOT) had a hammer candle on Tuesday and has since traded up from there.

It is currently coiling three dollars higher, closing yesterday at $28.10.

Check out the stock chart:

I think RIOT is ready to make a move back up towards $38.

The earnings report is due out on August 9, so I like buying something that expires before then.

Options within earnings periods will always have a higher implied volatility due to the uncertainty of the report and how the stock will react.

Now, you know me, and I like to buy cheap options.

Let’s look at the Aug. 06 expiry:

I like buying the 28-strike calls and selling the 34.50-strike calls.

As you can see, these markets are very wide, so this could be a tough one to execute.

I would pay up to around $1.90 for this six-and-a-half point spread with two weeks to go.

I would take my losses at $1.30 and begin to take profits at $3 and higher.

Trade Review

      • Pinterest (Ticker: PINS) What a nice move yesterday! I sold my July 23 71-strike calls at $4.55 for a 225% gain.

And they actually traded $2,00 higher from there, too!

Enjoy your weekend …

And be sure to make Thursday night on your calendar for the dynamic duo debut.

Thanks for Reading … See You Next Tuesday!

Licia Leslie

 

Tossed Salad and Scrambled Eggs

Hi Shoppers,

I am seeing a bullish engulfing candle from Thursday which means Pinterest (Ticker: PINS) could be ready to trade higher:

If PINS opens and trades higher this morning, I will buy calls in the July 23 expiration.

PINS has earnings  on July 30 and the at-the-money calls, the 72s, expiring Friday have an implied volatility of 46.79 while the 72-strike calls expiring July 30 have a whopping 86.22 implied vol.

I think buying the July 23 72-strike calls paying $1.10-$1.15 will be profitable by expiration on Friday.

High Times?

Check out the cannabis stock charts below …

They are all very similar and each has possibly made a double bottom.

If Chuck Schumer gets his way … definitely something to watch …

Aurora Cannabis (Ticker: ACB):

Tilray (Ticker:  TLRY):

Let’s Review

      • If you were able to hop on my trade ideas in Bank of America (Ticker:  BAC) and Facebook (Ticker:  FB), put buying, good for you!

The two stocks opened lower and traded lower, so you had to be quick and adjust your strike prices.

Thanks for Reading … See You Next Tuesday!

Licia Leslie

 

Did I Hear Her Correctly?

Hi Shoppers,

Someone please pick my jaw up from off the floor.

Did I really hear the White House Press Secretary say the administration is working with social media platforms to make sure no “misinformation” is put out there regarding Covid-19?

“We are flagging problematic posts for Facebook that spread disinformation,” the not-creepy-at-all Jen Psaki said last week.

AND she wants people removed from all platforms once they have been deemed misinformation spreaders on one platform.

“You shouldn’t be banned from one platform and not others for providing misinformation out there,” Psaki said.

Oh.

She went on to say that there are about a dozen people spreading 65 percent of the misinformation regarding vaccines.

Does the government now have files on those twelve people?

Are they being watched?

Psaki further added that the government has ramped up its tracking and disinformation research.

The Biden administration has been meeting with social media platforms, including Facebook, Twitter, YouTube, Snapchat and Pinterest, since the presidential transition.

So … what? People aren’t smart enough to decipher what could be real or true versus what could be misinformation … ?

Where does this end?

What else can the “tracking and disinformation research” be used for?

Winston Churchill asked back in 1936, “Does the government exist for the individual or do individuals exist for the government?”

He answered with, “I hold that governments are meant to be, and must remain, the servants of the citizens … The true right and power rest in the individual.”

Such a wise man. 

Where are the wise people now?

I’ll tell you where …

They’re reading my trade idea in Facebook (Ticker: FB).

My Facebook Trade

I have reviewed the Facebook (Ticker: FB) stock chart and I think it is going to go lower this week:

As you can see above, the stock is sitting at near-term support.

If FB opens and trades lower today, I will buy the July 23 340-strike puts with an implied volatility of 22.90 and sell the 330-strike puts with an implied vol of 25.30.

I like the July 23 expiration because I think the stock can trade down quickly and FB is reporting earnings on July 28.

So, I am avoiding higher volatility caused by earnings and paying less.

The July 23 340-strike puts’ implied vol is 22.90, while the July 30 340s are trading at an implied volatility of 38.93.

Huge difference.

I will watch for FB to open and trade lower this morning and I will pay up to $2.75 for this 10-point spread.

I will exit and take my losses if the spread trades down to $1.90, and I’ll begin profit taking at the $4 level.

And that’s not misinformation.

Thanks for Reading … See You Next Tuesday!

Licia Leslie

Expand Your Trading Horizons

Hi Shoppers,

Check out this ugly chart in Bank of America (Ticker: BAC):

I am seeing a head-and-shoulders formation, which could be signaling a top in BAC.

The confirmation is the piercing of the neckline — the horizontal line — which I think happened on Friday.

Also, Friday’s candle is a bearish engulfing candle — red and engulfing Thursday’s candle.

The next stop in BAC I think will be the $34 area.

As for timing on my trade idea, BAC traded down $3 this week. With that big red candle on Friday, I think it could move at least two bucks next week.

Of course, I don’t like paying extra, so I will buy the July 23 expiration puts.

The July 23 38-strike puts are $.08 in the money. (Strike price of $38 minus stock price o $37.92 = $.08).

If BAC opens and trades lower on Monday I will pay up to $.59 for these puts.

My favorite! A super-duper quick cheap shot.

Trade Review

      • Sadly, Ford (Ticker:  F) did not cooperate, the stock did not go higher. I paid $.23 for the July 16 14.50-strike calls and let them expire worthless. A lot of times when the options trade down to $.12 and $.15 it becomes easy to say, “Well I can just let them ride, maybe I will get lucky.” But that does end up costing money. Be careful of that trap I just fell in.
      • AT&T (Ticker: T) was looking strong on Thursday, so I bailed out on my July 23 28-strike puts for a 48% loss.
      • On the sunny side of the street, Comcast (Ticker: CMCSA) is going my way and the chart is still looking bearish. My July 23 58-strike puts are up 19% and are going higher this week.

Thanks for Reading … See You Next Tuesday!

Licia Leslie

 

Government Flip-Flop

Hi Shoppers,

I am still not sure about the net neutrality dilemma, but I have two good trading ideas in the communications sector.

Check out the stock chart of Comcast (Ticker: CMCSA):

Looks to me like CMCSA is ready for a bit of a down swing. and I have found the perfect, inexpensive way to make money on it.

Looking at the July 23 puts right out-of-the-money, I like buying the 57.50 puts paying up to $.60.

I think CMCSA can trade down to $53.50 and these puts will be golden.

Reach Out and Touch Someone

My other idea is in AT&T (Ticker: T).

Check out the chart:

Not looking so hot.

In fact, yesterday’s candle could turn out to be a bearish engulfing candle.

I think T has the possibility to trade down to $26.50 by next Friday, so I am looking at the July 23 28-strike puts, and I will pay up to $.33.

There you have it folks, two super-duper quick cheap shots.

I told you that was a professional term.

If these stocks open and trade lower today, I will execute these trades.

Trade Review

      • I hope you followed me into JD.com (Ticker: JD) on Monday. I bought five of the July 16 73.50-strike calls and paid $1.25. I sold them yesterday, four at $2.57 and one at $3.05. The high of the day was $4.05.
      • I am still long my Ford (Ticker: F) July 16 14.50-strike calls. I paid $.23 on Monday and they went out last night at $.14. I still think these have a very good chance of doubling at the very least by Friday.
      • My live trading record is here!

Thanks for Reading … See You Next Tuesday!

Licia Leslie

Highway to Hell?

Hi Shoppers,

Check out the stock chart for Ford Motors (Ticker: F):

F has traded down since June 4, when it hit a recent high of $16.45

The low was $13.74 on Thursday — which is looking like a doji candlestick.

Remember, the doji signifies a change in trend. In this case a reversal from the recent downtrend.

I think F can trade back towards $16, and I think it could happen this week.

So if F opens and trades higher this morning, I will buy the July 16 14.50-strike calls and pay up to $.25.

That is what you call a super-duper cheap quick shot.

Yes, that is a professional term, by the way.

These calls can trade up to $.75 and higher, and that is where I will begin to take my profits.

Thanks for Reading … See You Next Tuesday!

Licia Leslie

China, China, China!

Hi Shoppers,

Although the Chinese Large Cap ETF (FXI) has been selling off, I think the Chinese company JD.com, (Ticker: JD) is making a comeback.

Check out the stock chart:

JD closed at 73.56 on Friday, and I think it will trade back to $80.

Looking at the size of these candles, this stock is a mover and a shaker — and I think it could move by the end of next week.

So … 

I will be looking at the July 16 just-out-of-the-money calls, which are the 74-strikes.

As long as JD opens and trades higher on Monday, I will pay up to $1.20 for the July 16 74s.

If it trades over $2, I will take my profit.

If it trades down to $.80, I will exit.

Thanks for Reading … See You Next Tuesday!

Licia Leslie

Who is in Charge?

Hi Shoppers,

Chinese stocks took a beating yesterday, but this Chinese stock, NIO (Ticker:  NIO),  managed to maintain its uptrend line:

If NIO can continue to honor this trend line today, I will buy the July 16 50-strike calls with an implied volatility of 62.99 and sell the 55 calls with an IV of 71.36.

This 5-point spread has 11 days until expiration and NIO traded up to $55.13 just last Thursday.

I will pay around $1.45 for this spread as long as NIO trades above that trend line.

I will take my losses if the spread trades down to $1 and begin to take my profits above the $2.50 level.

Trade Review

      • I am still in my SPY July 09 427.50/417.50 put spread. I was supposed to take my losses a while ago, but I am still hanging on. Definitely against the trading rules.
      • I still have 40% of my Marathon Digital Holdings (Ticker: MARA) 29/36 call spread. MARA looked a bit weak yesterday. If it trades down today, I will definitely be out.
      • Southwest Airlines (Ticker: LUV) traded lower yesterday, so no trade — not a valid doji.

Thanks for Reading … See You Next Tuesday!

Licia Lestie