Backtest Snapshot: Almost $5,000 in One Month

This is just a snapshot of the analyst backtesting on Mark Sebastian’s new trading strategy. Each of these trades had a buy-in of $100 or less – and none of them took longer than one month to payout. $4,773 in 30 days? With a minimum $100 risk on each trade? It’s possible with Mark’s new Asymmetric Warfare trading strategy. And he’ll break down exactly how it works right here.

Top Three Banks Reporting Earnings Tomorrow

  1. Bank of America Corp. (NYSE:BAC), Goldman Sachs Group Inc. (NYSE:GS), Morgan Stanley (NYSE:MS)

All three of these names report earnings tomorrow morning before the bell in the second batch of big-bank reports.

And that means we’ve got not one, not two, but THREE post-earnings profit plays at stake.

I’m looking for a chance to trade out of earnings tomorrow on BAC, GS, and MS – and you can check out my post-report trading strategy in this video.

  1. ARK Innovation ETF (NYSEARCA:ARKK)

Cathie Wood’s ETF has been melting lower, and it’s taking the market with it. The market seems to mirror ARKK lately. If the ETF is up, so is the market… and vice versa. And I am still looking for a spot to buy put spreads.

  1. iShares Silver Trust (NYSEARCA:SLV)

SLV is breaking the 50-day moving average, and it could be getting ready to make a run here…

SLV breaks 50-day MA

And long calls make sense for a bullish play.

Why Contango Doesn’t Matter Today

Yellow Traffic LightFrom red to yellow – according to my traffic light indicator, the VIX is going to move wildly today.

Now, the VIX futures curve is in a contango:

VIX Futures Curve

This is typically bearish for volatility. But remember… the curve isn’t the only indicator I use to determine the color of my VIX traffic light…

And, in turn, the future of the VIX.

Volatility of VIX itself – not of the market, but of the fear index – is so high – up almost 6% on the day as U type – that the light is yellow.

This means we can expect big moves both up and down this week.

Go Long on Global Tech with This $1.8 Million

Dynatrace Inc. (NYSE:DT) is a global tech company that’s seen a ton of large call spread orders over the past few weeks…

Including this May $65-$55 call spread:

One big-money trader bought 6,000 of the May 20, 2022 $55 calls for $5.70 a piece and sold 6,000 of the May 20, 2022 $65 calls against it for a credit of $2.70.

In total, the trader spent $1.8 million on a bullish bet on DT – and it’s not the first one that’s come across my screen.

This stock reports earnings on February 17.

I don’t trade through an earnings report. I trade to it.

That’s because a stock’s implied volatility tends to run up into earnings as everyone speculates what the report will say. And if you buy and sell before the report even comes out, you can profit off of the volatility run-up without the risk of being disappointed by the report.

Upcoming earnings combined with this bib bullish money? This is a no-brainer – I’d consider going long on DT calls here, selling before the Feb 17 report.

I’m using this strategy to play earnings all season long. And you can do it with me.

Click here to learn more about my post-report strategy.

I talked through my Watchlist, yellow VIX light, and this big-money DT trade during today’s Profit Takeover show at 10:30 AM ET.

And if you want to get the best plays of the day BEFORE my eLetter hits your inbox, then make sure you tune into my next show…

Tomorrow from 10:30 to 11:30 AM, right here in the main room!

See you then,

Mark Sebastian
Founder, Profit Takeover


Leave a Reply

Your email address will not be published.