Welcome to 2021, the year of the Gold Rush and Helicopter Dollar Drop …
In the Federal Reserve’s final meeting of 2020, the Fed was very clear that their only mission is to print as much money as it takes to create inflation.
Of course, Power Income’s No. 1 rule in trading is to “Trade with the Fed.”
You see, Fed money flow is the most powerful force in the markets …
And it’s time to go with the flow.
Going for the GLD (Strategy)
I spent New Year’s Day doing research so that you can get off to a fast start in 2021.
It was worth it.
Check this out …
Twelve out of the past 15 years GLD killed it in January … and seasonal trends can be powerful!
Now, let’s see how the broader trends impact January performance:
During the only down trend over the entire period, GLD put in its greatest January performance.
That’s a pretty powerful seasonal!
Setting Up for Success
The set-up for GLD looks good heading into this January.
Since we anticipate a quick move to the upside, purchasing GLD calls is a sound strategy.
I will pull the trigger on:
An outright buy of GLD 179 calls to 2/19/21 expiration based on Thursday’s 4.70 close.
Exit Strategy Scenarios:
Based on our analysis for the Jan move, you can make an incredible 1,200% annualized return!
Bringing It Home
Beyond what I think will be a great trade, I also want you to notice the three building blocks for a consistently successful approach to trading that were in practice above.
- Do the research and find supporting data
- Locate the optimal risk/reward trade
- Pre-plan your entry and exit strategy
Consistently practice those steps and you will be in a better position to build your wealth.
Please reach out with feedback, thoughts or questions and as always …
Live & Trade with Passion,
DISCLAIMER: FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. The materials presented from Option Pit LLC are for your informational and educational purposes only. Neither Option Pit LLC nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational and educational purposes intended is at the user’s own risk.
DISCLAIMER: OPTION PIT LLC IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Option Pit LLC is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented materials. Specific trading ideas or strategies discussed in the presentations or materials are entirely illustrative and do not constitute the solicitation of a transaction (or transactions) or a recommendation to execute a particular transaction or implement a particular trading strategy.
DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions.