Mark’s Watchlist: Featuring a Ford Trade Rec

  1. Ford Motor Co. (NYSE:F)

F took up residence on my Watchlist yesterday, after a 20,041-contract yield play flowed into the automaker company. This stock is up almost 82% year-to-date, and I see a run higher coming soon.

Why? Well, this is a real company that’s getting meme-stock attention – meaning it’s got social media and fundamentals backing its push higher.

Ford is a company that makes money. Look at the F150 Lightning. The truck doesn’t go on sale for another year or so, but in the 48 hours after its debut, the F150 garnered 44,500 orders.

At $100 per reservation, that’s $4,450,000 on a car that isn’t even on sale yet.

And I get it. When I first saw a commercial for the electric pick-up truck, I was completely mesmerized. I’ve gotta say – the F150 Lightning is going to crush Tesla’s “cyber truck” right into Elon Musk’s crying hands.

But before that happens, we’re going to profit on F.

Yesterday, I told you about an at-the-money (ATM) call spread. But today, I found a straight call for less than $150 that could hand out an asymmetrical return before summer’s end.

Here’s my trade recommendation for asymmetrical profits on F:

Buy-to-Open the F August 20, 2021 $16 calls for $1.20.

If this trade doesn’t fill by Friday, June 11, then you should cancel it. That means you’ll enter it as good-’til-canceled (GTC) through then. If the trade does fill, you can start tracking it on the Profit Takeover portfolio right here.

And now, onto the rest of my Watchlist…

  1. Advanced Micro Devices Inc. (Nasdaq:AMD)

I’ve been watching big money flow into Intel Corp. (Nasdaq:INTC) for a while now. First, one trader bought over 25,000 call options with a June 18 expiration. Those lost. Then, they rolled out the trade, buying 25,000 more call options – this time, with an August 20 expiration:

Click To Enlarge

Now, I like the chip play. But I wouldn’t do it on INTC – I’d do it on AMD.

Right now, AMD is trading around $80. At the start of the year, it was above $90 – and I think it can get there again. It’s been hurt by the chip shortage – but now that that’s a well-known problem across all chipmakers, it’s pretty much “baked in” to the price.

Meaning AMD is ready to rise again.

To play it, I’m looking at the July 16, 2020 $85 calls for $1.95 – a call option that can easily double by next month.

  1. Microvision Inc. (Nasdaq:MVIS)

This tech company just made a huge announcement – one that had me saying “holy hell” out loud while looking at my computer screen.

MVIS is releasing $400 million in junk debt to buy Bitcoin. The stock was up premarket on the news, and I’m sure this is one name that’s going to fly all over the place in the next few weeks.

This is going to be an interesting name to trade. But for now, I’m holding off – and giving this stock a place on my Watchlist instead.

  1. Vodafone Group Plc. (Nasdaq:VOD)

This is a telecom company that has about 125,000 open contracts on the October $19 calls – a move that, at one point, represented 50% of all open options in VOD.

When someone sucks up all the volume like that, that means they have a giant axe to grind on the stock. And my gut says something’s coming on VOD – I’m just not sure what that is yet.

  1. Energy Transfer LP Unit (NYSE:ET)

If oil’s going to $75, then ET, which already pays a $0.60 dividend a year, will raise its dividend.

And if more people pile into the stock, then we’ll see it move up big from its cheap $10.90 price.

Want an inexpensive way to cash in on this real company with a meme quality? I’m looking at the July $11 calls, which are only about $0.40 right now.

VIX Traffic Light – I Hate to Say I Told You So…

Just kidding. I love saying I told you so – especially when it’s to the analysts and Wall Street pros that swore on volatility rising.

For the past few weeks, my VIX light has been red as I called for a VIX drop to sub-15 by the Fourth of July.

My light is still red today – and it looks like the VIX is already on its way down.

This morning, the VIX dropped to $16.29, its lowest level in the past month.

And we’re ready to see it slide even lower as the month goes on.

While I’m busting the media’s calls, let’s talk about the so-called “biggest story of the week…”

Why You Shouldn’t Care About the G7 Tax Deal

The big news of the week came from the G-7 after the US, Canada, France, Germany, Italy, Japan, and the UK agreed to a historic deal over the weekend.

According to the U.S. proposal, corporations around the world have to pay a minimum 15% tax on profits.

Historically, big, multinational companies like Facebook, Google, and Amazon have purposely based their headquarters in places with smaller tax rates, therefore keeping their tax payments as low as they can.

Speaking of FAANG – the proposal also includes an extra tax of profits from the “largest and most profitable multinational enterprises,” of which, according to Janet Yellen, Amazon and Facebook would “qualify by almost any definition.”

When I opened my laptop on Monday morning, this story was everywhere – CNN, CNBC, Fox News, you name it. My editors were asking for a piece on how this “big news” would affect FAANG stocks.

But here’s what I had to say…

This isn’t “big news.” Frankly, this is hardly news at all.

Here’s the thing – the G7 is made up of the countries with the wealthiest economies in the world.

That’s the US, Canada, France, Germany, Italy, Japan and the UK. And each of these seven countries already have relatively high tax laws, each of them requiring around a 15% tax on profits anyways.

So their backing of this proposal isn’t surprising – and it doesn’t mean that it will become law anytime soon.

First, the proposal needs to pass through the G-20. Within that, we have Ireland, a country that’s been “lucky” enough to attract a ton of tech jobs in recent years.

“Luck” which can be defined as a low corporate tax rate of 12.5%.

If the proposal passes through the G-20, then we’ll have a real story on our hands.

For now, we can sit back and relax – FAANG stocks will still move, but it won’t be due to this tax deal.

Now, folks, that’s all for today.

In a single issue, I brought you an official Profit Takeover trade recommendation on F

Plus, a trade idea on both AMD and ET.

As you can see, options are the best way to make asymmetrical returns – and it’s always the strategy I’ll use when we’re leveraging volatility into big money here at Profit Takeover.

One option strategy I’ve gotten more than a few Ask Me Anything questions about is covered calls – something we haven’t used yet here.

And tomorrow, I’m going to walk you through that strategy by revealing what I called “the wheel trade.”

Stick around…

Mark Sebastian


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