Your Almost Daily Bit of Wall Street Wit & Wisdom

Outsiders

h/t AP Photo / Warner Bros.

Look for options that are set to move from “out-of-the-money” to “in-the-money.”  That is where your greatest returns are made.

You should only trade options with risk capital (money you can afford to lose) and only if you understand options.

Out-of-the-money options have no intrinsic (real) value.  Their premium (price) is for time and volatility only.

In-the-money options have intrinsic value plus time value.

Now in our 31st year of publication, Options Hotline readers apply our Superleverage strategy to make great options gains from small stock moves, with an always known and completely limited risk.

Subscribe to Options Hotline today to stay a step ahead of the crowd.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

Shane Parrish quote

h/t Shane Parrish, @ShaneAParrish

The quote above is from self-improvement specialist Shane Parrish and his excellent Farnam Street blog (fs.blog). Always learning.

Yes, don’t take yourself too seriously and don’t be concerned with conforming to the crowd.  I get nervous when the popular view matches my own.

Knowledge is a key characteristic of successful traders, along with courage, discipline, and hard work.

And, of course, luck.

Good luck in your trading.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

“Intelligence consists in ignoring things that are irrelevant.”
— Nassim Nicholas Taleb

Now in our 31st year of publication, we do our best to filter out the noise.  At Options Hotline, we combine the best of western technical analysis with my expertise in applying ancient Japanese charting techniques to today’s markets.

I base my analysis and outlook on the character of the behavior of market price movement.

That is important.

To profit from my knowledge based on experience, subscribe to Options Hotline today.

Good luck in your trading!

Best regards,

Steve

 

+208% in Less Than a Month, Luckin Runs Out!

Luckin Coffee chart

Chart by Steven Sarnoff, h/t stockcharts.com

Options Hotline reco update, FYI:

On Friday morning, our subscribers received an email Alert and had the opportunity to close out our recommended trade on Luckin Coffee (LK), more than tripling their money in less than a month!

Though it may go on to greater gains, our objective was achieved and we like to stay a step ahead of the crowd.

The Luckin March $31call triggered 12-16-19 at $5.00,

traded 01-10-20 at $15.40,

+208% in less than a month, with an always known and strictly limited risk!

I can’t guarantee that all my recos will have the good fortune to multiply like our Luckin play, but I do promise to continue to do my best to find options winners for my great subscribers.

My next bulletin is scheduled to broadcast this afternoon.  If this is the type of options action you’re looking for, subscribe to Options Hotline today.

Good luck in your trading!

Best regards,

Steve

+206% in Less Than a Month, A Good Luckin Move!

Luckin Coffee chart

Chart by Steven Sarnoff, h/t stockcharts.com

Options Hotline Update, FYI:

Shorts are getting squeezed, as Luckin Coffee (LK) traces out a bullish price pattern.  Consecutive strong red candles (see my daily chart above) helped our recommended March $31 call triple in less than a month.

The LK March $31 call triggered 12-16-19 at $5.00,

traded 01-09-20 at $15.30,

+206% in less than a month, with an always known and strictly limited risk!

Now in our 31st year of publication, the Superleverage power of our method continues to light the way for sensible speculators.

I can’t guarantee that all my recos will multiply like LK, but I do promise to do my best to find options winners for my great subscribers.

Subscribe to Options Hotline today to stay a step ahead of the crowd.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

“We have nothing to fear but the lack of fear itself.”
— Walter Deemer, @WalterDeemer

Currently, there is no fear in the market.  When complacency moves to extremes, it’s a warning signal for traders.

Smart traders know that when volatility (fear) departs, prepare for its return.

Be ready for volatility to return.

Our next bulletin goes out on Sunday.  Subscribe to Options Hotline today to vie for fun and profit.

Best regards,

Steve

Your Almost Daily Bit of Wall Street Wit & Wisdom

“Lose your opinion, not your money.”
— Linda Raschke

The four most important words in the English language may be, “What is your opinion?”  Differing opinions make markets; but, for traders, opinions can be dangerous.

Individual traders, who consider too many conflicting opinions can end up in paralysis.

Even worse than paralysis is stubbornly sticking with a wrong opinion.  That can knock you out of the game.

As a general rule, never add to a losing position.  Remember that successful money management in trading is as much about honing your survival skills as it is finding winning trades.

Best regards,

Steve