This Was Fascinating to Me [and Something Special For You]…

The Option SenseiThe Option SenseiOctober 26, 2021

Dear Reader, 

This is Matt, I run things behind the scenes here at Options Sensei.  I wanted to take a moment and thank you for reading our newsletters.  We work hard to bring you useful, high quality information on a daily basis. 

That said, I want to share something with you that was fascinating to me.  

Steve just put on a trade this morning in his concierge trading service, Options360.

Nothing unusual about that really…

The fascinating part was how insightful and counterintuitive the trade will seem to most retail traders.  

Let me just share the alert with you: 

The mega-cap tech names of FB, AMZN, AAPL, MSFT and GOOGL all report earnings this week. These 5 companies account for some 43% of the Powershares 100 (QQQ) ETF

I’m pretty sure they will be strong but there is a distinct possibility of a sell news reaction. Of more import will be if any issued reduced guidance whether it be from supply china issues, a shift in spending from goods to services or slowdown in ad revenue whether from changes made to iOS data tracking or simply some companies don’t have the inventory (or have sufficient demand) that they reduce ad spending.

Whatever the case it seems there is some downside risk to the names and hence the QQQs

Let’s use a diagonal on a 2×1 contract to get some downside exposure through next Monday. Remember, we will be able to roll into Wednesday’s expiry to reduce cost.


I can’t give you the trade because people actually pay for that insight, and it wouldn’t be fair to them.  However, you can get the trade – just take a test drive in Options360 for just $19.

What I love about this trade is how Steve combines technical and fundamental factors and comes up with a thesis about how these stocks may go down even though he expects strong earnings.  

Intuitively, most retail traders would think a solid earning report would mean a rise in stock prices.  

Steve understands that isn’t necessarily true, and he helps his subscribers navigate the market and profit in these crazy market conditions.  

That’s why I am so proud to be associated with Options360, and why I urge you to take a moment and register for your trial subscription right now

I can assure you it’ll be the best money you ever spent!



The post This Was Fascinating to Me [and Something Special For You]… appeared first on Option Sensei.

Source: Option Sensei

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