♟ How to Profit From Panic-Selling

 
WARBrought to you by The War Room
Let me In!
How to Profit From Panic-Selling
Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance
Pawn Chess Piece Turmoil at this family office fund resulted in an overnight win for War Room members.
 
Turn Downtime Into Cash!

A former Chicago Board Options Exchange trader is showing regular people how they can make a killing as traders...

Right from their homes! (No experience necessary.)

One reader just locked in $2,480... with a 41% gain in just 41 minutes!

Click Here to Learn the Secret >>

 
WAROverheard Inside The War Room
Pawn DAL remains a "Buy" on pullbacks.
Pawn With ARKK looking to retest the $160 level, it's certainly one to track going forward.
Pawn Members locked in a nice overnight winner on AAPL... Click here to start your journey to daily profits!
 
Karim Rahemtulla
Last week, a large family office fund collapsed. A family office is not dissimilar to a hedge fund.

It manages money for wealthy families, usually using the same types of strategies employed by hedge funds. These can include private hedge transactions with large banks, quantitative trading, long-short strategies and other exotic instruments that are created just for the fund.

When you have a lot of capital, billions to invest, a lot of banks are willing to be the counterparty.

But when things go wrong, they can go very wrong. The crux of most of these exotic strategies lies in the use of margin. For those of you unfamiliar with margin, it's when you put up some money and borrow the rest to "juice" your returns.

When the strategy is going your way, your returns can be magnified by a factor of one or two. That's incentive!

Banks are the place to go to be able to borrow large quantities of cash...

Of course, just like when you fail to make a payment to your bank on a loan, it will come after you and your assets, selling them to cover the loan. If that asset is worth more, the bank makes money. If it's worth less, it loses money. If it's a fire sale, it loses a ton of money and your net worth is decimated in the process.

But someone always makes money. Last week, that someone was War Room members... and here's why...

Archegos Capital Management was the family office fund that collapsed last week...

Archegos allegedly used up to 20 times leverage. That means it was investing $20 for every dollar in collateral. The move failed. As shares that it bet on plunged, the losses piled up for Archegos and the banks that loaned it the money.

One of those companies was ViacomCBS (Nasdaq: VIAC), which saw its share price go from around $12 to more than $100 in the last year and settle in the mid-$40s after plunging more than 50% last week.
 
Viacom Daily Chart
 
War Room members were there to pick up the pieces using our proprietary put-selling strategy that has yet to register a loss since The War Room's inception in 2019.

Members were able to rack up gains of more than 40% overnight by selling puts on ViacomCBS at the $25 level. Take a look...

Thom 3/30/2021 at 12:37:41 p.m.
I opened VIAC at $1.55 and closed at $0.97, 37%.

Tad 3/30/2021 at 12:47:51 p.m.
I opened VIAC at $1.67 and closed for $0.95 for nice gain of 75.8%. THX KR!!

Emmanuelle Q. 3/30/2021 at 1:19:48 p.m.
Out at $0.95 +40% thank you Karim for this overnight trade!

Our "bet" was that the company would not fall further after the news was out. After all, it had just raised $3 billion the week before at prices above $80.

Well, we were right, and the shares bounced back. But thanks to all the volatility, options premiums were pushed so high that when the news finally filtered out, the level of volatility plunged and so did the price of the puts. You see, when you sell a put, you want the price of the put to go lower, not higher.

Action Plan: In The War Room, we employ all types of strategies. But our edge is that we can react in real time to opportunity. In this case, our opportunity was the result of a real-time crisis. Your seat at this exclusive table is waiting. What's holding you up? Join me today!

Yours in smart speculation,
Karim Rahemtulla Signature
Karim Rahemtulla, Head Fundamental Tactician
Monument Traders Alliance
 
Recent War Room Winners
AAPL4/1/202113.65%
AWK3/31/202120.00%
CONN3/31/20219.09%
QS3/31/202112.80%
VIAC3/30/202142.50%
Biggest War Room Winners
BG5/26/2020320.00%
DIS10/13/2020198.81%
FDX9/18/2019188.49%
NUGT8/17/2020179.31%
FSLR10/28/2020160.15%
Fastest War Room Winners
LMND(4 minutes)
12/7/2020
36.67%
ROKU(4 minutes)
9/10/2019
53.62%
MCD(5 minutes)
1/8/2020
24.39%
OKTA(5 minutes)
1/6/2020
27.50%
RGR(8 minutes)
1/6/2021
73.33%
WMT(Fastest double)
1 hour, 20 minutes 7/7/2020
121.12%
 
WAR Room Testimonials
  
WAR King Don W. April 1, 2021, 9:35 a.m.
Held on to QS overnight and glad that I did. 16 April 21 $43.50 calls, In at $4.00, out now at $8.80. Thanks BB.
  
  
WAR Queen coach April 1, 2021, 10:07 a.m.
Out at 1.70. Got in late to the trade and made 9.5%... I will take it!!!!
  
 
Look at What Obama Is Up to Now! obamagun

On June 16, 2021, Obama will get his last laugh.

That's when a group of his hand-picked cronies may single-handedly bring this market to a sudden and destructive end.

To continue reading, click here.
 
 
 
You are receiving this email because you subscribed to Trade of the Day.
To unsubscribe from Trade of the Day, click here.
Questions? Check out our FAQs. Trying to reach us? Contact us here.
Please do not reply to this email as it goes to an unmonitored inbox.

To cancel by mail or for any other subscription issues, write us at:
Trade of the Day | 14 West Mount Vernon Place | Baltimore, MD 21201

North America: 1.800.507.1399 | International: +1.443.353.4977
Website: MTATradeoftheDay.com
Keep the emails you value from falling into your spam folder. Whitelist Trade of the Day.

© 2021 Monument Traders Alliance All Rights Reserved
 
Nothing published by Monument Traders Alliance should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after online publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Monument Traders Alliance should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.
 

No comments:

Post a Comment