Live Reveal: A 50-Cent Trade on the Dollar
I’ve got a $0.50 trade with the potential to turn an asymmetrical return before summer’s end. And it’s the perfect way to fade the U.S. dollar’s rally after last week’s Fed meeting. But here’s the catch – I’m dropping it live.
Meaning if you want to get into this trade before the rest of the crowd, you’ll have to catch my live webinar tomorrow at 12:00 p.m. ET. It’s free to Profit Takeover members. All you have to do is show up right here at noon.
I’ll see you then!
Buying the “Antitrust Dip”
It’s no secret that big tech runs the world.
Amazon has a monopoly on retail. Apple’s iPhones are in the hands of every generation. Google has basically been the go-to search engine since the beginning of the Internet.
FAANG stocks may lack the luster they used to have, but they’re still some of the most expensive – and powerful – names on the market.
So much so that it’s creating a problem.
Remember when I told you about my secret intel into the retail market? It’s all thanks to my wife, who runs a fashion blog and has partnerships with various stores.
Well, I recently found out that Amazon product prices are now more expensive than the same products from the original retailer.
Why? Because they can be.
Guys like Jeff Bezos, Tim Cook, Mark Zuckerberg – they’ve got a hold on the world’s business like no one else.
Something has to be done about the abuse of power and monopolistic nature of these companies – and finally, something is.
Lawmakers have introduced a series of antitrust bills that would put a cap on these companies’ power and could end up breaking them up.
Essentially, they would make it more difficult for big tech names to complete mergers, stopping the purchases of other businesses that would be clear conflicts of interest.
Clearly, big tech isn’t happy, claiming the new laws would prevent them from fulfilling customer’s needs.
Regardless, these bills represent change – change that could, ultimately, affect big FAANG from a stock perspective.
Now, the new antitrust bills haven’t been passed yet. They still need to be approved by the Judiciary Committee and the Senate.
But if they are approved, then big FAANG will get slammed.
And that’s when you want to buy. Because from there, these companies will rise to new highs over the coming years.
There’s precedent – let’s take it back to the ’80s.
In 1982, AT&T provided up to 85% of telephone lines in the U.S. Its subsidiary, Western Electric, produced the majority of telephone equipment – giving AT&T a monopoly over telephone service and equipment.
So, the federal government broke them up. In 1984, the Baby Bells – seven independent Regional Holding Companies – were formed.
Since then, most of the Baby Bells have evolved into today’s AT&T and Verizon. And they are worth significantly more than the original AT&T stock.
Well, today’s FAANG is the 1980’s AT&T – and these names need to be broken up.
And when they are, you’re going to be set to profit.
How? Well, you can always buy the dip. Or, you can sell puts on one of these names.
Using this strategy, you collect premium on the puts you sell. If the puts expire in-the-money, then you get to keep that premium. If they expire out-of-the-money, then you’re assigned the stock.
That’s why I only sell puts on stocks I want to own. So either way, I’m getting what I want – be it extra money, or shares of the stock.
These laws could contribute to the “fall of FAANG” right now – but in the long run, they could end up padding your wallet.
VIX Traffic Light
Volatility got hammered yesterday. As I type, the VIX sits at 16.23 – that’s 21% lower than Friday’s high.
So, it should come as no surprise that today’s VIX light is red as we watch vol push lower. The VIX futures curve is now below where it was last Tuesday. It’s like Friday’s spike was a one-day freak-out and now, we’re moving on.
The next question is whether we’ll keep pushing lower or if we stall here, at just above 16.
Many of these names are familiar residents of the Profit Takeover Watchlist.
- Ford Motor Co. (NYSE:F)
That’s right – this automaker is still sitting at the top of my Watchlist. After Friday afternoon’s dip, F is already up 5%.
- BP plc (NYSE:BP)
BP might be new to the Watchlist, but the sector isn’t. Oil and energy stocks are rising rapidly as oil prices climb higher. And BP is up almost 32% year-to-date.
- Exxon Mobil Corp. (NYSE:XOM)
XOM is being pushed higher by the same forces as BP and the rest of the oil and energy sector. The only difference? XOM is one of the biggest and most popular of the group.
- Energy Transfer LP Unit (NYSE:ET)
On the flipside, ET will run you just over 10 bucks a share – giving investors and traders alike a cheaper way to cash in on rising oil.
- Transocean LTD (NYSE:RIG)
RIG started as a meme stock – but since then, it’s evolved into a regular on my Watchlist. Even cheaper than ET, this $4.40 stock has incredible room to run.
- Apple Inc. (NASDAQ:AAPL)
I’ve been watching AAPL for a few weeks now. And after looking deeper into the antitrust laws threatening to break it up, I’m more interested than ever before.
And that’s all until tomorrow, folks…
Cheap option, asymmetrical return – it’s the cornerstone of our mission here at Profit Takeover, and you don’t want to miss it.
June 23 2021