YOLO Trading Bros vs. Money Pros — Plus, a Special Announcement!

Dear New Money Club Member,

Saying it’s been a wild week would be an understatement…

Over the last 15 years, I’ve traded through a lot of wild market swings, flash crashes, short-selling bans, etc.

But what happened this week is a first, as retail firms banned the basic foundation of the equity markets, buying shares of a company.

Now, there’s a lot of speculation and theories about why this happened. Every firm is different, and who they clear transactions through is also different.

Some firms blocked transactions on Reddit-focused stocks, and a few had to stop for a handful of hours because regulators forced their hands.

In short, we’re witnessing a revolt and the start of a revolution against the establishment and the elite class. It’s incredible to see all these events unfold.

People have had to sit back for 12 months while seeing their livelihoods and communities destroyed … all while a certain group of people get filthy rich.

Now, in 2008, I walked away from Wall Street with a mission to help the little guy beat the market. And what I’ve seen this week has invigorated me with more purpose and joy.

The goal is to make money, but this goes deeper! The little guy is tired of being told they can’t do something or they aren’t smart enough. And as you’ve seen this week, we must stick together if we want to beat them.

Trading is tough, but at the bottom of today’s update I attached a screenshot. It’s a post from one of the Reddit members in the WallStreetBets group. They are out for blood and it’s only the start of something big.

Which brings us to...

Today's Special Annoucement

Moving forward, my goal is to provide new trade opportunities on both Mondays and Wednesdays. As you may have noticed this week, we decided to jump into a new trade in Amer Axle & Manufacturing (NYSE: AXL) in place of our midweek update.

This change is simply meant to give you more shots at quick profits! And we'll still have our end-of-week Friday updates, where we'll cover each week's action in detail.

OK, with that, the CBOE Volatility Index (VIX), aka the “fear” index, is still above our key 15 levels, trading at 31. (This is 10 points higher than last week!)

Markets are very volatile, and the market structure is on shaky ground with some of these hedge funds blowing out.

Typically, we have a domino effect with good stocks being liquidated to cover the losses of other positions from this aftermath. That’s why we’re seeing market weakness, because the heavily focused names like Apple, Facebook and Amazon are being sold, pushing down the indexes.

This market has been built on a house of cards the last decade, and I don’t know if this is the final blow. But it’s why I love being in options (because we can manage our max loss before entry). And when big drops in the market happen, we’re not playing on our heels and making poor decisions. It allows us to focus on the signals and ignore the noise.

January has been a tough month for us, but I know things will turn around and we’ll go on a nice winning streak.

So with that, let’s talk shop…

Portfolio Update

On Monday, we issued an alert to:

Buy to Open GOGO Inc. (Nasdaq: GOGO) March 19, 2021 , $20 calls (GOGO210319C00020000) up to $0.95 per contract or better, for the day.

And on Wednesday, we suggested to:

Buy to Open Amer Axle & Manufacturing (NYSE: AXL) April 16, 2021, $13 calls (AXL210416C00013000) up to $0.45 per contract or better, for the day.

Sell to Close Altria Group Inc. (NYSE: MO) Jan. 29, 2021, $43 calls (MO210129C00043000) at the market.

So right now, we’re holding:

  • Schlumberger Limited (NYSE: SLB) February 5, 2021, $26.50 calls (SLB210205C00026500).
  • América Móvil, S.A.B. de C.V. (NYSE: AMX) February 19, 2021, $16 calls (AMX210219C00016000).
  • GOGO Inc. (Nasdaq: GOGO) March 19, 2021 , $20 calls (GOGO210319C00020000).
  • Amer Axle & Manufacturing (NYSE: AXL) April 16, 2021, $13 calls (AXL210416C00013000).

 After-Action Report

This is our debriefing of every trade closed — or ones that expired. It’s where we analyze what happened, why it happened and how it can be done better … sort of like what the military uses after missions.

Altria Group Inc. (NYSE: MO) Jan. 29, 2021, $43 calls (MO210129C00043000)

Date: January 6, 2021

Reason: Our system triggered a bullish signal after a $21 million New Money bet, which is a 712% surge in new call options purchased.

Outcome: Exit for a 34% loss.

Notes: We traded this the right way. We didn’t gamble and play earnings. We took our shot and it didn’t hit our profit target. Unfortunately, that’s how it goes sometimes.

Let’s keep focused, not panic and let the market come to us. And I’ll be keeping you updated every step of the way.

Have a great weekend, and I’ll have a new trade for you on Monday.

To your wealth, freedom and options!

New Money Club

P.S. Here’s the screenshot from the WallStreetBets group on Reddit: