We had another fantastic week of trading to start the new year…
That’s not to say it’s been easy — trading options in this volatile market has made good timing even more of a critical factor.
The way I see it, trying to follow trends these days is like trying to swim upstream — put buying is never easy and buying calls on the high of the day is a great way to get caught in a volatility crush.
Just as I thought heading into 2023, we had a rotation into growth and junk names — the stocks with horrible charts have been rallying while all the stocks with good charts have been selling off.
And while our trading hasn’t been perfect, our New Money Crew strategies continued to rack up some fantastic options wins to add to the tally despite the volatile markets, and it started all with Wiretap Alerts…
Beaten-Down Stocks Stay Hot for Options Trading in 2023’s Volatile Markets
If there was one name to focus on for this week’s earnings it was our good friend Tesla Inc. (Nasdaq: TSLA)…
This top EV name dropped more than 60% in value through 2022, but it’s picked up a ton of steam in the days heading into its Jan. 25 earnings event.
We grabbed the Jan. 27 expiration, $139 calls on Friday as markets rallied. And not only did that momentum carry over to Monday, the stock also received a nice boost from analysts that morning…
The news helped Wiretap snag a solid 30.8%* gain on our calls to top a trio of winning trades that included Marathon Oil Corp. (NYSE: MRO) and Amazon.com Inc. (Nasdaq: AMZN)!
Our ongoing winning streak stretched the strategy’s all-time win rate to 74% with an average return of 13.2% — including all winners and losers — across a three-day holding period.
I know it can be a big change for folks out there to come around to this type of contrarian, short-term trading, but staying nimble, using proper position sizing and being selective have been a winning combination for New Money Crew so far in 2023…
And like the old saying goes, “If it ain’t broke… don’t fix it.”
Check out this week’s market update and let’s talk about options trading in volatile markets, look at what was working, what wasn’t and what opportunities I see out in the markets right now…
P.S. I’ve Been Dying to Share This Secret
There’s something on my mind that I’ve been dying to share…
Something that can be used by traders and investors of all skill levels.
It doesn’t matter if you’re a day trader, options trader, swing trader, a casual investor or if you’re just getting started in the stock market.
It spits out buy and sell signals based on the real reasons stocks move up and down…
And I think it could influence your trading month in a BIG way.
*Stated results are atypical for given period. Past performance is not indicative of any future results. Trade at your own risk.