GME

Gamestop Corp

Options

How to Safely Profit on the Next GameStop

Unless you've been camping on Mt. Everest this week, you've heard the deal with GameStop.

The company had been on deathwatch since 2019, and it didn't do as well as other pandemic-era "comebacks"… until the Internet got hold of it. The price action has been just absolutely bananas over the past week or so, as momentum has gathered. In the five minutes since I started to type this, the price has yo-yoed in a $50 range.

GameStop has been a short squeeze of massive proportions, but as of Wednesday, the two biggest short positions, run by Melvin Capital and Citron Research, have been covered and closed. Finito. Andrew Left, the CEO of Citron – which really likes to short stocks – said his traders had covered their short at $90 and taken a 100% loss.

Without the big shorts, there's just no mechanical reason for this rally to continue. It's like a car with the gas light on – you might make it a couple more miles, but one way or another, you're stopping. It could be a matter of hours before those Internet-based investors realize they've bought big into a company that, for all the hype of the past few days, is still a really troubled operation on deathwatch.

Here's the thing, though… GameStop is only the biggest, most famous of these stories right now. Reddit, TikTok, and other social media-based investors have targeted other big Wall Street shorts out there.

I've made a list I'll share with you in a second, and I'll tell you how to play them.

Like I said the other day, cooler, calmer heads have a chance to sneak in the back door, safely pocket some gains, and get out again before anyone realizes what's happened… Full Story

Like I said the other day, cooler, calmer heads have a chance to sneak in the back door, safely pocket some gains, and get out again before anyone realizes what's happened...

Options

This "Short Squeeze" Options Trade Could Pop After Feb. 11

So far, 2021 is already shaping up to be great for traders.

Two days after the Nasdaq and S&P 500 reach all-time highs, the bears ravaged the market for its biggest loss in three months on Wednesday.

Short-sellers are getting crushed and even some the big tech leaders – like Apple Inc.

(NASDAQ: AAPL) and Tesla Inc.

(NASDAQ: TSLA) – are in play with huge moves higher and lower.

In other words, volatility is back and that makes this a great market for options traders.

Not only that, but earnings season is here and that is usually a major catalyst for stocks.

One of the themes Money Morning's Quantitative Specialist Chris Johnson has identified for this season is the rebuilding of America.

.

And nothing supports that effort like the raw materials industry...

Stocks

3 Surprise Stocks Amazon Could Put Out of Business

It's not much of an exaggeration to say that everyone knows that Amazon.com Inc. (NASDAQ: AMZN) is a true juggernaut.

From its humble beginnings as an online bookseller, it now commands a retail, cloud, logistics and content empire that many say single-handedly put shopping malls out of business.

That means Amazon isn't just one of the biggest companies in the world, it's also its biggest disrupter.

Legacy companies trying to compete with Amazon are living on borrowed time.

Here are three that are already at risk...

Dow Jones

What Yellen's Speech Means for the Dow Jones Industrial Average Today

The Dow Jones Industrial Average is rising ahead of trading this morning, but all eyes will be on Fed Chair Janet Yellen as she speaks at the Fed's annual Jackson Hole summit today…

Dow futures are up 39 points this morning, and we don't expect the Fed will slow stocks down today.

Here's a look at today's most important market events and stocks, plus a look at today's economic calendar...