Dear New Money Club Member,
Stocks have stalled and look top heavy after this recent rally.
A recent market tell for a sharp pullback has been when the CBOE Volatility Index (VIX) pulls back into the 20 level.
Right now, prices of the VIX are trading at that level, which means we can see volatility pick up.
Now, we have two new buy signals that will help us in a volatile market.
Here's what we're doing…
Action No. 1:
Buy to Open the ProShares UltraPro Short Dow 30 ETF (NYSE: SDOW) Feb. 19, 2021, $12 calls (SDOW210219C00012000) up to $0.25 per contract or better, for the day.
We’re going to set our profit target at $0.50. And since the contract is $0.25, we will risk the full premium.
SDOW is seeing bullish call buying after a $9 million New Money bet anticipating that shares will move higher by next week … which is a 3,800% surge in new call options opened.
These calls will increase if the Dow Jones Industrial Average sees a sharp pullback similar to what we saw on January 21.
Action No. 2:
Buy to Open the Sohu.com Ltd. (Nasdaq: SOHU) March 19, 2021, $22.50 calls (SOHU210319C00022500) up to $1 per contract or better, for the day.
For this one, we’re going to set our profit target at $2 and our stop-out price at $0.40 per contract.
SOHU is seeing bullish call buying, which triggered after nearly a $1 million New Money bet that shares will pop higher in the coming week. This is a 300% surge in new call options opened.
Now, let’s manage our risk before entry and let the market come to us. And I’ll be keeping you updated every step of the way.
To your wealth, freedom and options!
Joshua M. Belanger