Trade Highlight: FCX
On the last day of January – just five days after FCX had reported earnings – I spotted a cheap-option play on the stock for just 80 cents.
So, I recommended the February 25 $40 calls during the live trading session:
Two days later, FCX had risen as expected… and we sold half of those calls for $1.60 – 100% in two days!
But FCX wasn’t done yet… and neither were we.
Yesterday, FCX absolutely skyrocketed:
And in the morning, we sold half of the remaining position for $2 – that’s 200% in nine days!
And then, the whammy – before the end of the day, this option was worth $4.
Do the math…
That’s a 400% post-earnings profit in nine days. And that’s exactly what I like to call asymmetric trading.
How did we do it? Well, by playing this earnings pattern…
Three Factors Moving the Market Higher
Since then, we’ve been on a steady climb upward:
My VIX light is still yellow, but unless we have a complete turnaround in the market, we could end the day red, meaning volatility is set to drop.
- Meme stocks like AMC are in a short squeeze that’s pushing the Russell 2000 higher.
- Commodities like oil and gas prices are rising, which is holding up oil and energy names like BP and XOM.
- Banks like BAC continue to be strong.
Heavy Call Buying in HTA
This trader bought 15,684 of the HTA April 14, 2022 $37.50 calls for 30 cents each – a total purchase of $470,520.
HTA opened this morning at $31.08 – so why does this big-money buyer think it’s going to $37.50?
Well, as I said before, this isn’t the first heavy call buy I’ve seen on HTA.
Real estate can do extremely well in an inflationary environment – and all of this heavy call buying has me wondering if there’s a buyout at play here.
If so, we could see some real upside coming here…
And I’d go bullish on HTA.
Disney’s Out-of-the-Park Earnings… Pun Intended
- Walt Disney Co. NYSE:DIS)
DIS absolutely blew the doors off of earnings this morning, reporting a higher-than-expected jump in streaming subscribers and theme park revenue for Q4.
This was my pick of the year, and I think it could make a run at $200 by the end of 2022.
But I’m also interested in making some bucks in the meantime…
Especially now that DIS is prime for a post-earnings trade using this asymmetric strategy.
- Palantir Technologies Inc. NYSE:PLTR)
After a steady downfall, this stock seems to have finally found its footing…
It might be time to go long calls on PLTR as it starts its move back up.
- Cameco Corp. NYSE:CCJ) & Denison Mines Corp. NYSEAMERICAN:DNN)
These names have one thing in common: uranium. And uranium is blowing higher as I type. As paper heats up in both of these names, there could be a bullish trade in both names – and that’s exactly what I’m looking to trade in today’s Profit Revolution trading session.
Founder, Profit Takeover
One response to “400% Profit Alert (in nine days)”
February 10 2022