Play Ford’s End-of-Year Pop with This 80-Cent Trade
Double the Impact Trades – Double the Money
The institutional traders are out in full swing heading into the end of the year – and I’ve got two trades on my impact money radar to share today.
Jumia Technologies AG (NYSE:JMIA) is an online marketplace that sells clothes and electronics. But I care less about what the company does…
And more about the 26,000 contracts that traded on it yesterday:
Look, JMIA has been getting smoked… until yesterday, when it finally got a pop:
A pop that a handful of big-money players are betting on, based on those aforementioned 26,000 contracts.
Every one of these trades can be called “bullish bottom-picking” – traders looking to buy the bottom and ride the wave higher now that JMIA is showing some strength.
Yesterday, when this big money first crossed my screens, I seriously considered adding it to the Profit Revolution portfolio. But we held off – I wanted to see how the stock opened this morning instead.
But now, we’re ready to place an Asymmetric Trade on JMIA. One that’s under $1.00 with the potential to pay out 100% or more in 30 days or less.
Want the details of today’s trade? Become a Profit Revolution member today.
But JMIA isn’t the only big money flow I’m tracking…
I’m also looking at a three-point spread on one of my favorite stocks – Ford Motor Co. (NYSE:F)…
This “Ford Flow” is a calculated short-term play on the automaker making a pop.
A customer bought 22,000 of the December 17, 2021 $21 calls, paying just 20 cents. Then, they sold the December $21.50 calls for a dime…
Paying only 10 cents for this week-and-half long play.
I really like the risk-reward here. They’re betting a dime to make 40 cents – which they will if F makes it over $21, cementing a new 52-week high.
I’m looking to go a bit further out here though… to the January 21, 2022 $21 calls. They’re only 80 cents, and if this institutional trader is right, they’ll pay out a nice asymmetric return.
Yellow VIX Light: Wild Moves Ahead
But after peaking above 34 this week, the VIX has found its way lower, and sits at just below 22 as I type.
And according to my four indicators, our VIX light has changed back to yellow.
Now, this doesn’t mean it’s all smooth sailing ahead. Remember – while a green light means volatility is going up, a yellow light means wild moves ahead. And those moves could either take us back up to green…
Or down to red, if vol sneaks its way back to the 17, 16, or 15-level.
Now, I’m leaning further in one direction here…
There’s some big-money bearish sentiment out there in the VIX right now. The biggest option trades we’ve seen this week in the volatility index were on the 18, 19, and the 20 puts.
It makes sense to bet on a downfall here. We’re heading into a seasonally low point for the volatility index. Ever heard of the Santa Claus Rally?
Stocks tend to rise during the last few weeks of December into the new year. And in turn, the VIX tends to head lower.
But the Santa Claus Rally is nowhere near the biggest trading opportunity of the holiday season…
I’ll tell you what it actually is right here. (HINT: it’s about making money when the market closes.)
Founder, Profit Takeover
December 08 2021
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