Video Breakdown of a Blood, Bath, & Beyond Butterfly
Not to Say I Told You So, But…
Here’s a screenshot directly from yesterday’s Profit Takeover…
And where’s the VIX right now?
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That’s right – sub-15, at 14.77. And guess what’s sitting at a pretty profit?
Our UVXY January 21, 2022 $20 put.
We’re going to kill that now at $7.90 for a 32% profit. Here’s what to do…
Sell-to-Close UVXY January 21, 2022 $20 put for $7.90 or more.
The VIX looks like it fell off a cliff yesterday afternoon. And if tomorrow’s non-farm payrolls go well, it could drop below 14.
My VIX light has never been redder. We’re going down, down, down from here!
Blood, Bath, & Uranium: Mark’s Watchlist
And why uranium is my top commodity trade of the moment.
- Bed Bath & Beyond Inc. (Nasdaq:BBBY)
I refer to BBBY as BLOOD Bath & Beyond. Why? Because this company is incredibly poorly run – and the shares reflect that, down more than 21% over the past six months.
Click To Enlarge| BBBY, May-Nov 2021
The stock opened around $20 this morning. And I think it’s heading down to $17. IV is still really high, represented by the blue line in the chart above. And puts are the perfect way to play this name…
But not a straight put. When IV is this high, you can actually be right on a trade and still lose. That’s exactly what we want to avoid by constructing trades like butterflies or spreads.
On yesterday’s live Profit Takeover show, I actually broke down a BBBY butterfly. You can catch a replay of that right here:
Not interested in butterflies? You could also create a put spread, buying the November 19 $20 puts and selling the November 19 $17 puts against them. This will only cost you about $1.60, and I’m looking at a 2-1 return.
- Cameco Corp. (NYSE:CCJ)
China is building nuclear plants, and there’s a trust buying up as much raw uranium as it can. I could talk about uranium stocks all day long – and I’m not the only one.
Option flow in CCJ is insane. We’re looking at 20,000 contracts in a single strike almost on a daily basis.
I think this one is poised to go higher. I’d buy calls in December and continue to roll them higher month after month to cash in on some long-term bullishness here.
- Denison Mines Corp. (NYSEAMERICAN:DNN)
DNN is a great alternative to CCJ. It’s incredibly cheap at under $2 a share. And when it does break above $2, it’ll make a real swift move higher, heading to $2.25, $2.50, and beyond.
I break down uranium trades regularly in my live Profit Revolution trading sessions. And one of our open trades is approaching a 100% gain…
In 1 Month, Turn Your Rainy-Day Fund into $125K
Just ask Arthur S. from New Jersey, who just made 107% on Exxon in less than one month.
And that wasn’t his first trade either.
“I am building a nice rainy-day fund,” he said. “I am up just over 400% in a little over a month.”
That’s incredible – but he didn’t stop there.
“I’m starting to increase the amount I put in every trade, as the track record justifies my investment in Mark and his team.”
I mean… wow. 400% in a little over a month?
Returns like that could turn $1,000 into $5,000…
$5,000 into $25,000…
And $25,000 into $125,000…
In 30 days or less!
It’s possible with asymmetric trading. It’s possible with the Profit Revolution.
And it’s possible for you. Just click here to learn more about our asymmetric trading strategy.
The Most Aggressive Call Spread I’ve Seen
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This is a close and roll on steroids. A trader sold 10,000 of the December $165 calls for a pretty nice profit…
And they used that profit to roll up… and up… and up.
This big-money buyer bought the December $175s, $180s, and $190s, betting on some serious upside.
I’m interested. You’d be a fool not to be. It’s leverage upon leverage upon leverage, and NKE looks good.
NBA season is here. The holidays are coming up. Supply chain issues are already priced in.
I don’t know if I’m quite as bullish as this buyer, but I’m definitely willing to put some cash down on NKE…
Specifically on the lowest strike of this aggressive spread – the December 17, 2021 $175 calls.
But this isn’t the only big money flow on my radar today. Someone’s also pouring cash into Goodyear Tire & Rubber Co. (Nasdaq:GT).
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We’re looking at another close and roll here, the trader unloading their January $18 calls into the April $23 calls, continuing their long exposure in GT.
I’m interested in this trade as well.
GT isn’t that liquid of a stock. So, because this trader just sold off their January calls, the January expiration is actually getting cheaper.
And right now, the Jan calls are less expensive than the April ones.
You know my strategy. In order to make asymmetric returns, we need to buy cheap options. And the January $23 calls are only about $1.50.
Now, GT reports earnings tomorrow morning. So I’d hold off on these calls until after that report.
But this customer clearly thinks GT is heading higher, and so do I.
Before the weekend rolls around, be sure to send me any trading questions you have right here, using my Ask Me Anything form.
I’ll do my best to answer some of the best questions I see.
Founder, Profit Takeover
November 04 2021
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