Archive Category: Wednesday Windfalls Alerts

The stock market took a dirt nap yesterday. Five stocks closed lower for every higher one. We saw shares of one of our plays, Gap (GPS), edge higher yesterday and today. The move was mild and not enough to give us a true “windfall” profit. And shares of Barrick Gold Corp (GOLD) and Camping World Holdings (CWH) could not escape yesterday’s sell-off. They’re clawing back today, but it won’t be enough to avoid losses on our call option positions. All told, we’ll have to take an overall loss this week.

I received a kind email from Wednesday Windfaller Scott R. last week. He paid me quite the compliment, saying: “I’m telling others, ‘this is the guy to go with, I know from experience.’” Thanks for that, Scott! He also asked a timely and insightful question: “I’m curious how this system will perform in a market crash scenario like 2008.” It’s not the first time I’ve gotten this question. And I completely get it — it feels scary, maybe even a little foolish, to simply carry on trading through a nasty bear market.

We should be able to lock in an overall profit of well over 100% this week!

One of the top trade recommendations I’ve shared with my option-trading subscribers came from an unlikely source: Super-Valu, a ho-hum grocery store chain! In 2018, I observed consolidation in the grocery space driven by Amazon’s acquisition of Whole Foods. I identified Super-Valu as a takeover target and recommended my subscribers buy call options on the stock to position ourselves. A short time after we got in, a deal was announced … and the calls we’d bought for just $2.65 a contract shot up to $14, giving us over 400%. Of course, trades like that don’t come along every day. And they’re certainly no “sure” thing.

We didn’t get a “pop” higher in any of our three trades this week. Shares of the Direxion Daily FTSE China Bull ETF (YINN) edged higher just a bit, which worked to keep the value of the $4 calls we bought close to our breakeven entry price. Otherwise, shares of the iShares MSCI Japan ETF (EWJ) and Baxter International Inc. (BAX) slipped lower, creating more significant losses in our calls on those plays. All told, we’ll have to take a loss overall this week.