By: Christian Tharp, CMT
A lot of my trader friends have been calling me lately…
All wanting to commiserate on exactly where they went wrong…
You see, it’s been a rough few months to be a trader. January was especially difficult for people who like to trade tech stocks. In fact, the tech-heavy Nasdaq just narrowly avoided recording its worst January ever.
And it’s easy to see why. Just look at these stock moves.
Over the course of a single year, Peloton (PTON) fell from a high of $157 down to $22.
BigCommerce (BIGC) went from $92 last February to $25 two weeks ago.
DraftKings (DKNG), which was trading around $65 just five months ago, is now priced in the low $20s.
But that’s not the scariest part. Some of the overnight drops have been especially alarming…
After its most recent earnings report, Netflix (NFLX) fell from $508 to $397 overnight.
PayPal (PYPL) just collapsed from $175 to $132 overnight.
And in the first days of February, Meta (FB) dropped from $323 to $238 in less than 24 hours.
In this extremely volatile market, owning individual stocks is a high-risk endeavor. It just doesn’t make sense!
That’s why I like to look at exchange-traded funds, or ETFs for short.
Unlike individual stocks that could bounce up and down like a red rubber ball, ETFs hold baskets of similarly themed stocks. Because they’re more diversified, they’re lower risk by nature.
In fact, this diversity offers protection. It slows everything down so the moves aren’t extreme. Plus, if you have the right idea but the wrong stock, you can still win.
Unfortunately, a lot of self-identified “traders” don’t bother with ETFs. They’re too “slow” and don’t see the same kind of “pop” that can come with individual stocks.
But that’s where my Smart Trades strategy comes into play.
This trading service takes all the benefits that ETFs have to offer — lower risk, wider net — and then targets them with call and put options to amplify their smaller moves into gains even the WSB forums would drool over.
It’s disciplined, easy to get in, and easy to stay in. I’ll show you exactly what I mean.
So far in 2022, we’ve made two trades in my Smart Trader service.
The first trade we made this year was in SPDR S&P Oil & Gas Exploration & Production ETF (XOP), an oil and gas ETF with holdings that include names like Exxon Mobil, ConocoPhillips, and Marathon Oil.
Early in January, we bought calls on XOP for $1 each. The next day, XOP’s price jumped 9%, so we turned around and sold our calls for $3 a pop — a 200% gain on our trade in a single day.
My next trade was in VanEck Vectors Semiconductor ETF (SMH), which is a semiconductor ETF that holds companies like NVIDIA, Qualcomm, Advanced Micro Devices, Intel, and so on.
I thought the sector was primed to move lower. I didn’t want to “go short” the traditional way — a strategy that creates an unlimited risk trade — so I opted for buying put options instead. This gave us a defined amount of risk, and my readers would still get the rewards if I was right and the sector dipped.
We bought the puts on SMH for $1.25 each, and I sent out an alert telling readers to go ahead and set a sell limit for $3.75. The very next day, SMH fell 5.7%, sending the puts up to our limit order. We cashed out for the full $3.75 — another 200% gain for a trade that was open just one day.
Like I said… disciplined and easy. And with significantly less risk than trading a single individual stock like Netflix or Peloton.
So far for the year, my Smart Trades service has closed out two separate 200% winners by making low-risk trades in ETFs. (For comparison, the Nasdaq was down nearly 9% for the month of January… and the S&P 500 was down more than 5%.)
We didn’t work hard… we worked SMART.
And today, we’re giving you the opportunity to work SMARTER.
What do I mean by that?
We’ve opened up 100 new spots in my Smart Trader service at a mega special price.
It’s just $49 when you access it today.
That’s 50% off the normal monthly rate. And the best part is that you get to keep that price. By accessing today’s special reveal, you get grandfathered into the price for as long as you want it.
If you want to get the best options ideas on targeted ETFs and learn to trade smart, not hard, I urge you to give the service a try today. There were originally 100 Smart Trader spots open, but I mentioned it on a group call earlier and now there are only 67 left.
I’ll be recommending my next trade soon, and after the gains we’ve closed so far this year, I know you won’t want to miss it.
Whether it’s in tech… electric vehicles… gaming… gambling… it will be another low-risk, high-reward opportunity. You’ll be risking just a few hundred dollars to go after thousands…
Trading SMART, not hard.
And saving half price on the service is the only way to make your trading even smarter. But remember, there are only a limited number of spots available, and they’re going fast.