20 years ago, Mark Sebastian spent his days on the CBOE, perfecting a single trading strategy – one that exploited a hidden flaw he’d found in Wall Street’s big-money trades. When he discovered the kind of money this strategy could make, he asked his boss if he could share it with his clients… And he was fired on the spot. But now, Mark’s done with the corruption of the financial system. And he’s showing YOU the strategy that got him blacklisted… right here.
Meet Cute of the Day: Grand Theft Auto & Words with Friends
Take-Two Interactive Software Inc. (NASDAQ:TTWO) announced plans to buy Zynga Inc. (Nasdaq:ZNGA) in a $11 billion deal.
Anytime a merger like this occurs, there are multiple trade opportunities at play in both stocks. And I’m going to dig deeper into this Grand Theft Auto-Words with Friends merger during my Profit Revolution lifetime trading session tomorrow at 1PM ET.
This is where I release advanced trade recommendations to my most dedicated members. And my lifetime members have had a stellar time…
With the chance to make 117% on BRK.B in three months and 242% on CLF in one week!
Tomorrow, I’ll see how we can trade this video game merger with a Profit Revolution trade during our live lifetime session. If you want to join, then give my team a call at 877.212.9163 or click here to learn more about a lifetime membership.
Until Thursday’s session, let’s take a look at this big-money trader going big-time bullish on TTWO:
This is what we call a risk reversal – and it’s aggressively bullish.
See, usually we see institutional traders creating a collar. That’s buying a put, selling a call, and going long the stock.
But this trader did the opposite.
They sold the March $140 puts, bought the March $150 calls, and sold 1.2 million shares of the stock against it.
If Take Two takes off, then this trade will absolutely explode.
But I’m interested in doing a little something called merger arbitrage here. Instead of playing the company that’s doing the buying, I want to play the company that’s getting bought out.
If you want an asymmetric trade, then I’d buy ZNGA options, not TTWO.
The April 15, 2022 $9-$10 call spread is only about 25 to 30 cents right now in ZNGA. And it’s a relatively low-dollar way to play a recovery in TTWO after the company buys out ZNGA. This could turn into 50 to 75 cents before spring.
Inflation Is the Highest It’s Been in 40 Years. But the Market Is Off to the Races
And inflation has officially risen to a new 40-year high.
This sounds bad – but the market was expecting this. In fact, most traders are just relieved it wasn’t worse than that.
And post-CPI, the market is off to the races, all three major indices shooting higher out of the open.
So, we’re looking at a red VIX light again today – and it’s one I think could hold through the rest of the week.
We could see the VIX make a serious run at breaking below 17 today – and from there, who knows how low we could go?
As the VIX tumbles lower and lower, this could put a huge weight on the necks of UVXY and VXX – two ETFs that are prime for some put trading.
In the Spotlight: XLF
The financials are in the spotlight this week, with JP Morgan, Wells Fargo, and Citigroup kicking off the fourth-quarter earnings season on Friday.
These reports are important. Not because of what they’ll SAY…
But because of how the stocks will REACT.
And I’ve got more than a few post-earnings volatility plays up my sleeve on these financial names – all of which I’ll be going through starting Friday in the Profit Revolution live room.
Earnings season is the best three weeks to trade the market. Don’t miss out on the best opportunity of 2022 so far. Click here to join my daily earnings trading sessions for the next three weeks.
- Financial Select Sector SPDR Fund (NYSEARCA:XLF)
As money floods back into high-beta names, the safety of bank stocks could be under a bit of pressure – and with earnings starting Friday morning, the XLF is like a ticking money bomb that I’ve got a close eye on as I seek out some post-earnings asymmetric plays.
- Apple Inc. (Nasdaq:AAPL)
AAPL is a great trading stock – because it’s one you can play up and down, over and over again. Right now, the big-tech name is making another run up at $180 a share:
It’s time to jump on AAPL – and I might buy the $177.50 calls expiring Friday for a quick two-day profit.
- Exxon Mobil Corp. (NYSE:XOM)
XOM just hit a new 52-week high of $71.81. But there’s no way it’s done yet – this was a $90 stock a few years back! If oil continues its run up, XOM could be set up for a great long-term bullish play.
I’ll be live AGAIN for an hour-long Profit Takeover show tomorrow at 10:30 AM ET, right here in the main room.
That’s where I’ll break down Thursday’s VIX Light analysis, big-money flow, watchlist, and my earnings trading plan.
Founder, Profit Takeover
January 12 2022