You See a Pullback — I See Opportunity!

The market finally experienced a little pullback this week following months of melt-up momentum. But I’m not sweating this action at all…


Because, in my world, volatility equals opportunity!

Every time in history that the market has experienced a sell off, it has rallied and gained back those losses. I feel pretty confident about those odds…

So when the market sees some downward action, I see opportunities to buy!

Plus, it’s all about strategy and money management. I’m not in the business of buying stocks and holding for years. I buy limited risk, in-the-money call options with enough time left to take advantage of the bullish momentum.

This strategy lets a modest move in the stock generate outsized returns on the options, giving us 50%, 75%, and even 100%+ returns in no time flat!

How long would you have to hold a stock for a 50% return? The answer is too long!

Bottom line: Today’s market is filled with opportunities for short-term traders. Don’t miss out on the action!

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

Chart of the Day: The other side of the “reopen trade”

Greg Guenthner

Earlier this week, I discussed the resurgence of the “reopen trade” as vaccine optimism and a return to normal life starts to become top of mind for investors.

I even highlighted the bullish setup in the US Global Jets ETF (NYSE:JETS) as the ETF started to break out to post pandemic highs.

But there are consequences to these reopen stocks breaking out…

Just look at the work-from-home group.

Pandemic favorite Peloton Interactive Inc. (NASDAQ:PTON) isn’t having a great month. This former superstar momentum trade is losing steam and has dropped a quick 15% from last month’s highs. Breaking below $135 could spell more trouble for the interactive home workout stock.

Just take a look at this chart:


Peloton has posted an amazing rally since its March lows. But a breakdown at these levels followed by further downside wouldn’t surprise me at all.

Don’t get me wrong — I don’t think Peloton is a zero. This is a strong, growing company! It just flew a little too close to the sun. A hard reset might once again set it up for strong gains.

— Greg Guenthner

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Buy the Dips, Sell the Rips!

The powerful pattern of higher relative highs and higher lows continues week after week. As I always say, price is paramount! If you’re still caught up in the negative pandemic headlines, you’re missing out on countless profitable trading opportunities.

Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

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