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The markets have taken a beating this week after North Korea and the Saudi-Russian oil war added to the COVID-19 wreckage.
But the fact is not even the economic carnage we've seen over the last few days can keep you from turning a profit.
And if anyone knows how to make money in a down market, it's Fast Profits regular and Editor of Night Trader Chris Johnson. In fact, the last time Chris joined us, he recommended two profit plays to combat the economic effects of COVID-19. Fast-forward two weeks later, and those plays have made 40% to 400% gains for our readers.
Today, Chris is bringing you another potential "grand slam" - a trade opportunity that's being driven higher by the growing number of coronavirus quarantines.
It's an online retailer that's enabling Americans to work (and shop) from home - a job perk that's quickly becoming a necessity as more and more residential areas go into "lockdown" mode.
This stock is up 30% year to date but has pulled back about 7% this month as the market takes a hit. This is giving you an incredible entry point, as Chris still expects it to climb another 20% to 30% in the next few months, framing a prime window of profits both for the long and short term.
It's what he calls a "gem in the rubble."
Take a look below for the full details...
3 Steps to Doubling Your Money, No Matter What COVID-19 Throws at You
Today's trade details:
Action to Take No. 1 - Place a limit order to buy shares of ETSY for no more than $55.
Action to Take No. 2 - Buy to open $60 ETSY June 19, 2020 calls for no more than $6.50.
Chris said it best in today's Fast Profits episode: "Volatility creates opportunity."
Stocks may be going haywire, but there's still plenty of ways to both keep your portfolio safe and make substantial profits in the current market climate, something Chris has made pretty clear over the last few weeks with a jaw-dropping 400% winner.
But this isn't the only way to rake in fast profits today.
Tom Gentile, another familiar face here on Fast Profits, says there are three simple rules to making money in any market.
- Keep your risk low.
- Trade fast.
- Keep your sights set on the top market-moving stocks.
It may sound simple enough, but it's a proven method of doubling your money no matter what the market does next.
In fact, Tom's applied this foolproof trading approach to his own options trading system, Weekly Cash Clock. The result: Tom's subscribers are up more than 17% on average this year.
This may sound like a modest gain, but we're talking about a total portfolio balance during a time when the rest of the market is losing.
Needless to say, this system can keep the money rolling in whether stocks go up, down, or sideways.
Click here to see how Tom's readers do it before you miss another opportunity to join to them.
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Hi, I dont understand chris recommendations to enter trade. He says put limit order on etsy's for 55
Is that just buying shares for that price? And the 2nd action was to buy to open etsy's 60 dollar..for no more than 6.50. I tried to put these in and thats alot of money, so can someone please explain to me..is this a vertical call spread? I never know how to take action on his recommendations. I wish he would spell it out better as I dont understand.
Angela,
Thank you for reaching out!
The first action to take listed above is in fact a stock play, simply recommending to purchase ETSY shares for no more than $55. The limit order would be a conditional order ensuring that you would not purchase this stock for more than this recommended amount, however if the going market price is less than $55 per share, you could simply purchase at market. If you need any assistance with this, I would advise that you reach out to your broker.
The second action to take is a more speculative alternative – an ETSY call option. You could either take advantage of this options play, simply buy the stock outright, or both if your prefer. This would not be a spread of any sort, as we have only recommended a basic one-legged call option (otherwise referred to as a vanilla call) and/or the stock itself.
Regarding the option trade recommendation, at a premium of $6.50, this call option would be worth $650 per contract (100 shares x $6.50 per share). This however would be the maximum recommended price – currently Robinhood.com quotes this option at $3.75 (a total of $375 per contract).
Because our readers are using a variety of different brokerage platforms, each with it's own online layout, going into detail as to how to place each trade would only benefit a select few readers. So if you are requiring any assistance executing any particular trade, again you would likely want to refer to your broker.
Best of luck!
-Fast Profits Team Member
Tha't s what I thought.
I just picked up 2 contracts on June 19 $ 60 call option at 3.80.
Is out of money right now however Chris has a deep dive into the analysis so I was comfortable in buying it.
Rekha,
So glad to hear you were able to execute this trade!
However, if I'm understanding you right, you should always keep your own risk tolerance in mind on future trades.
Options are an excellent way to earn faster, bigger profits than almost any other security, and they're far less risky than most investors assume, given that you use them properly.
But no form investing can entirely eliminate the element of risk, even with a wealth of data to support investment selections like Chris has done here.
So the best way to minimize your own risk would be to never invest more than you can risk losing. After all, our goal is build your wealth fast, without breaking the bank.
Best of luck!
-Fast Profits Team Member
Please be more specific with this recommendation for us sophomores. Thanks.
Billy,
Thanks for reading Fast Profits with Money Morning!
As you can see from some of the other comments, we're catering to a fairly broad audience. Some of our readers are more seasoned and feel comfortable with technical indicators and in-depth research, while others are new to the trading game and prefer things as simple as possible.
We do try to appeal the widest array of trading needs, however if you need any further assistance of any kind, please don't hesitate to reach out to one of our customer service associates at 1(888) 384-8339.
Best of luck,
-Fast Profits Team Member
Hi, Now that I have a filled option trade for Etsy at $3.72, what is my exit strategy to profit?
Virgina,
That would depend on your desired target profit. Chris hasn't given a specific exit strategy here, so you would want to set up your target profit at your own discretion.
For example, if you hypothetically were shooting for a 100% profit here, at a confirmed entry of $3.72 you would then enter a limit order to sell at $7.44.
On the other hand, if you don't have a specific target profit in mind, some traders might just set a stop-loss and and keep an eye on their position, subjectively deciding when they would prefer to exit.
Ultimately, it would be up to you exactly when to exit this position.
If you need any assistance mapping out an exit strategy, I would advise reaching out to your brokerage.
Best of luck!
-Fast Profits Team Member
Thanks, this helps a bunch!
So now that ETsy has gone down to 49.01 a share can I put an order in at that price ? Then let it ride up and put a different amount for contract price as well?
Basically I'm trying to put I'n a 50 strike price or 45 since it dropped to lower than 45 Friday..and then put any amount im willing to put on it let's say 2.00 which equals 200 dollars for 100 shares. Would this be appropriate??
Sorry for all the questions just trying make sure I understand this correctly since I didnt get a chance to put in at 60 strike..so if im thinking correctly this would be ok? As it has gone down, so we just trying to figure out right time get in. 50 strike would excute right away but I put a call limit order in for 45..to see if it drops again..otherwise I might try the 50 strike. Am I on the right track now??
Ang,
Thank you for reading Fast Profits with Money Morning!
I understand your instinct to target a lower strike price. Because ETSY stock has fallen since this recommendation was posted, a lower strike price would be easier to meet. And should ETSY stock soar to $60 and beyond, a lower strike price would stand to profit that much more.
That said, you do want to be careful venturing outside of Chris' recommendations in any way. Chris is using a system of complex algorithms to select his trade recommendations, any shift in option criteria could drastically change the outcome.
Not to mention, a $45 or $50 strike would cost more than 2-3 times the amount of the recommended $60 calls.
Ultimately you can certainly trade outside of the recommendation at your own discretion, but should you do so I would encourage taking extra precautions to minimize your risk: including a an exit strategy solidified by a limit order, and/or some form of stop-loss.
Best of luck!
-Fast Profis Team Member