4th and 20 Stock Market
As I write this article, I am filled with excitement. Because, if you choose to execute these 2 trades that I am going to recommend, you will have a lot more money. Money to use in gambling, money to “elevate” yourself, and money that will allow you to have more freedom.
My two stock market recommendations are to buy a put on Tesla (TSLA) and buy a call on the Vix (VIXY).
Due to the fact that I have no idea of your knowledge involving economics and investments, I am going to assume that your knowledge is limited and/or non-existent.
In layman’s terms, options give you the power to make a lot of money on a risky trade without requiring an enormous amount of capital or downside. If you’d like to learn more, feel free to read about it on https://contrarianedge.com/options-hurricanes-hedging/.
As stated before, my two recommendations include one specific company (Tesla) and then a stock move that represents the general market (Vix).
Vix, which is a measure of the volatility in the market, is a well-known measure that many investors use to track the market. The vix had a major spike in March and then led to a major decrease in the following months. Many investors are puzzled about why the market is up, considering the fact that the US economy is relatively in shambles. The reason why the market has gone up is because of the massive stimulus the federal reserve has pumped into the economy. No one knows what is going to happen next.
One thing that everyone can agree with is that there is a divergence between Wall Street (Banks) and Main Street (the real economy). Although there is now a divergence, there will likely be a shock on Wall Street in the next few weeks as big banks report earnings (JP Morgan on July 14th, Goldman on the 15th, Morgan Stanley on the 20th). This is because big banks are affected by small business and give Wall Street insight into the world of real people.
I expect there to be a big increase in the VIXY before the end of July. Listen, before you purchase the option that I am recommending, I do not guarantee this to be a fact, and, if you choose to invest, there is a possibility of losing your initial investment.
With that being said, I recommend buying a July 31st Call at $28.50. I expect Vixy to get up between 35 and 40. If, for example, we split that difference and expect the price to be 37.50, and we purchase 3 options contracts, you would invest around $600. With that 600 investment, you would make $2100.
In terms of trading options, I recommend using Robinhood, which I assume many of you already use. Also, you can sell the option rather than waiting for the expiration date if the price peaks before July 31st.
My second recommendation involves the hottest stock on earth, Tesla. Tesla has had an incredible run. Tesla 52 week low is $211, now the stock trades near a 52 week and an all-time high around $1400.
Tesla is a brilliant technology company and car manufacture. They have a genius CEO and they are changing the world. But at the end of the day, Tesla is still not profitable. And even with that fact, Tesla is the most valuable car manufacture in the world.
Tesla is a bubble waiting to happen and either you will be a loser from the bubble popping or you will make a fortune on it.
I recommend buying a put, betting Tesla’s stock price will go down. I think the expiration date should be a longer-term vision, closer to September 1st.
Warren Buffett famously said, “Be fearful when others are greedy and greedy when others are fearful”.
Either you are going to fuck the market or the market is going to fuck you.
Stay smart, motivated, hungry, and horny,
The reincarnated Hugh Heffner