The Stock Bounce Is Gaining Steam

Dear New Money Club Member,

We’re seeing green so far this week, even after giving up some gains yesterday. That’s normal after a massive three-day rally, which we call an inside day. There are plenty of stocks setting up under the surface, which could continue to lift stocks into October.

Now, the fear gauge for the S&P 500, known as the CBOE Market Volatility Index (VIX), is holding at 25. That means volatility is two time the normal average, and markets will see quick moves higher and lower.

With that, let’s talk about our newest position this week…

Portfolio Update

On Monday, we issued a trade alert to:

Buy to Open Stitch Fix Inc. (Nasdaq: SFIX) Oct. 9, 2020, $28 calls (SFIX201009C00028000) up to $0.92 per contract or better, for the day.

Right now, we’re holding:

  • Nordic Amer Tankers (NYSE: NAT) Oct. 16, 2020, $5 calls (NAT201016C00005000).
  • Melco Resorts & Entertainment (Nasdaq: MLCO) Oct. 16, 2020, $20 calls (MLCO201016C00020000) — 50%.
  • Regions Financial Corp. (NYSE: RF) Oct. 16, 2020, $12 calls (RF201016C00012000).
  • Vonage Holdings Corp. (Nasdaq: VG) Dec. 18, 2020, $11 calls (VG201218C00011000).
  • Stitch Fix Inc. (Nasdaq: SFIX) Oct 9, 2020, $28 calls (SFIX201009C00028000).

Let’s keep focused and let the market come to us. And, as always, I’ll be keeping you updated every step of the way.

Your Questions, Answered!

The mailbag is full, so let’s get to your most pressing questions.

“Hi, Joshua,

I am frustrated because by the time I receive the trades they are above the limit price. When I try the following day again sometimes, I get in, but usually not. Please advise so I don’t miss any trades in the future.”  — Steve K.

I can understand the frustration — I’ve dealt with it over the last 15 years in the market...

If you’re not filled at our limit price you entered on a day order, then that order is canceled at market close. But if you enter “good ’til canceled,” it keeps that order open until it’s filled or canceled.

I don’t suggest leaving orders open or using good ’til canceled (GTC) when trying to get into options trades. That said, once you’re filled on a trade, you can enter GTC sell orders on price limits if you want.

In short, markets move — you don’t want any open orders that you forgot about to get filled. If you still want to make a particular trade, you can cancel the order and replace it with a new limit price.

Your goal should always be to get a better fill price than what is listed on the buy alert. The limit price I provide in every trade recommendation is the max you’ll pay up to.

If the price of the option goes over our buy-up-to price, you can increase the price, or you can try the following day. And if you do increase your buy-up-to price, I recommend not paying more than 10% of the price I’ve listed.

So, know that we always aim to accurately reflect the price at which New Money traders are getting their fills in our official prices.

I send you a new trade every week on Monday, and I also provide bonus picks. So, if you missed out, there are more opportunities just around the corner!

That’s it for me today, but be on the lookout for our next profit alert.

And remember: If you want your question answered next week, make sure you email it in today at questions@newmoneycrew.com.

Sincerely,

Joshua M. Belanger

New Money Club