An 80-Cent Trade to Play Retail’s Face-Ripping Sell Off
Today’s Impact Money Trade
A monster call sale just hit a stock I’ve liked for months: Ford Motor Co. (NYSE:F).
Someone selling over 150,000 January 2022 calls? That’s got to be a bearish trade…
Right?
Wrong.
This trade isn’t even a little bit bearish – in fact, it’s completely bullish. This big-money trader sees F rising higher into the new year.
How do I know?
First of all, this customer took a fat profit on these F calls. 150,745 contracts at $4.31 each? That’s almost $650,000 in premium.
But they didn’t just pocket this cash and run.
This customer converted their long call position into stock, buying 14 million shares against this option trade.
When a customer is this right, and maintains their bullish stance, I’m paying attention.
I’m going to watch F very closely over the next few weeks to see if this big money buyer returns. If a similar trade hits my radar, I’d definitely be interested in piggybacking.
For now, though, I think it’s wise to hold off. The easy upside money in F has been made. Once it retrenches below $14, even to $13.75 or so, I’d go long the $14 calls.
Mark’s Watchlist
I’ve got three new trades to tell you about today – one on each of these Watchlist stocks.
- Uber Technologies Inc. (NYSE:UBER)
UBER had a great day yesterday – and our new call is already up 40% – barreling toward an asymmetric win.
But listen – because I gave a recommendation on UBER to my Profit Revolutionmembers as well.
We recorded an entry of just $0.79 yesterday…
And today, less than 24 hours later, it hit $1.58! That’s over 100%!
Find out how you can receive up to five under $1 trade recommendations per week just like this one on UBER call us at 877.212.9163
- TJX Companies Inc. (NYSE:TJX)
Remember yesterday’s winning put on Macy’s Inc. (NYSE:M)?
Yeah, M wasn’t the only retailer that got crushed. The retail sector was destroyed yesterday:
But here’s the thing – I think things got a little overcooked here. At minimum, this drop is worth a dead cat bounce. If the S&P gets some support today, then we could see a real lift in retailers like TJX.
TJX was a $70 stock on Wednesday night. It can absolutely get there again, especially within the next two weeks. To play that jump, I’m looking at the October 15 $67.50 calls.
- Duke Energy Corp. (NYSE:DUK)
Utilities, like retail, have been smoked. But again, like retail, I think the sell-off is overdone. There’s an easy dead cat bounce here – and DUK is a great way to play it.
How? With the October par – that’s how we used to refer to the $100 calls when I worked on the floor.
The October $100 calls are only $0.80. If DUK makes a quick trip over $100 – which it did just a week ago – then you can flip these options for a simple 100% winner.
Ask Me Anything: Options 101
Remember, as a Profit Takeover member, you have 24/7 access to my email inbox.
If you have any questions about Profit Takeover, Profit Revolution, or trading in general, just pop it right here in the Ask Me Anything form on the Profit Takeover website.
This sends your question directly to my email inbox – and I always do my best to respond.
Some of the most popular types of questions that I see are around basic options training, like this one from Ralph:
The short answer? YES!
In fact, I have an entire options trading course that teaches you the “101” of trading.
It’s called the “Tactical Trading Course,” and it’s a complete, step-by-step breakdown of options trading.
Each session is only about 10 minutes long. Plus, I’ve even got training experts going live every single day to teach option newbies and pros alike the nitty gritty of trading…
So that you can see it in action, and ask any questions you have along the way.
Calls, puts, spreads, leverage – I could go on and on with the topics you’ll learn in the Tactical Trading Course.
Learn how to take this course – and become an options pro in 30 days or less – call us at 877.212.9163
Personally, I can’t think of a better way to spend your weekend.
Until next time,
Mark Sebastian
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October 01 2021
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