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Watching the market as long as I have has taught me something I now consider a universal truth: There really is no such thing as a "rational actor." Investors are often prone to make snap judgments and decisions based on incomplete information or just something that looks bad on the surface, and it's not always clear why.
It would be funny if those irrational decisions didn't affect the economy, but they do. It's not necessarily bad news, though - every time it happens, there's always an opportunity to be had.
That's why I'm watching BuzzFeed Inc. (NASDAQ: BZFD) this week. It went public via a SPAC merger that, for all intents and purposes, should have gone well. For some reason, investors got spooked, and they've decided to sell, sell, sell.
Where they see red flags, I see a chance for profit.
In today's video, I'll cover just how to play the Buzzfeed merger - and three other unlikely stocks I don't think anyone else is looking at right now.
Just click the video below to claim them.
In case you missed it, here are the plays:
- Buy Buzzfeed Inc. (NASDAQ: BZFD)...
- Buy Apple Inc. (NASDAQ: AAPL)...
- Simultaneously buy BABA Feb. 18 2022 $140 call and sell BABA Feb. 18 2022 $145 call to create a call spread...
- And buy Roku Inc. (NASDAQ: ROKU).
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About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.