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Sunday, November 24, 2024

Top Trade Tuesday – Q2 2020

Another low-volume week, so a good time to review.

Last Tuesday, we went over our Top Trade Ideas from Q1 of last year and we had one loser and 15 winners with a net of $271,087 in profits over the past 18 months (or less).  A few of them are even good for new trades - even now - like Viacom (VIAC), which had another 100% left to gain as of last Tuesday at net $10,100 and now it's $13,800 so up $3,700 (37%) in a week is not bad for a leftover, is it?  

Again, you don't need to make short-term trades in dangerous momentum stocks to make fantastic short-term money.  Using our system, it's just as exciting when a value stock pops - even when we have long-term contracts on them.  

The difference is we aren't taking those huge short-term risks that can damage your portfolio.  When something unforseen happens, we can ride it out.  Remember, Top Trade Alerts are trades we feel have a very strong chance of success.  Generally we pick them because they have both a long-term macro trend in their favor as well as upcoming catalysts and, as alwasy - first and foremost we're looking for VALUE.

Top Trades for Thu, 02 Apr 2020 12:58 – CMCSA

For the LTP:

  • Sell 5 CMCSA 2022 $30 puts for $5 ($2,500) 
  • Buy 15 CMCSA 2022 $30 calls for $8.25 ($12,375) 
  • Sell 15 CMCSA 2022 $40 calls for $3.75 ($5,625)

That's net $4,250 on the $15,000 spread so $10,750 (252%) of upside potential at $40 and we HOPE it goes lower so we can DD on the puts ($3,000) and roll the $30s to the $20s ($7,500) for net $3,000 and then we'd be in the $30,000 spread for $7,250 but, for now, best to start off cautiously and, worst case, it goes up and we "only" make 252% on our original play. 

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