(4x) Largest One Day Gain of My Lifetime
Welcome to Issue 053 of Masters in Trading Digest.
Today, we share our “Trade of the Week” broken down into 5 Bullet Points.
Is the Cannabis trade done? Not so fast, this just might be the calm before the storm.
Four Traders Win $50,000+ in USD!!!
Yes! This really happened.
“Largest One Day Gain of My Lifetime” – Craig S.
Enjoy,
Jonathan
TRADE OF THE WEEK
When traders buy options, in either calls or puts they need movement, they are buying volatility.
Here are 5 reasons why $VREX should outperform its implied volatility.
Before we start here are a few important terms to understand:
Implied volatility – the market's volatility
Historical volatility – the past volatility
Theoretical volatility – my personal volatility (any trader’s value of volatility).
Professional traders aim to capture the difference between their theoretical value and the market's implied value of volatility.
Traders may use historical volatility to derive a theoretical value.
$VREX: 5 Reasons Why We Expect This Stock to Move
Reason #1: Using our High-Value Target tool, going back 5 years, $VREX gets a rare buy signal. The rules of the HVT system can be found here.
Reason 2: The Wall Street Wiretapper picks up Unusual Options Activity. Only 3 stock tickers show up on 04/14/22, $VREX is one of them. When stocks show up on the Wiretapper they have a high likelihood of outperforming their implied volatility.
Reason 3: We use our Volatility Visualizer to assess how good market makers are at pricing options. If we go back 2 years the monthly implied volatility initial expected range holds true 95% of the time.
Reason 4: The company is presenting at an International Trade Show May 3rd – May 6th – one may assume exciting news could be shared at the annual conference. This certainly has the potential to be a volatility-inducing event.
Reason 5: $VREX is releasing earnings in the March Earnings cycle.
Don’t Quit on the Cannabis Sector
Cannabis stocks may have stopped popping up in the Wall Street Wiretapper, but their presence some weeks ago for a few days spread out across a cluster of stocks is enough evidence for me.
Notice what the second most viewed bill in Congress was last week. My bias here is that the cannabis sector has not yet had its move, the kind of move someone on the benefiting side of the information asymmetry spotted by the WT is still waiting for. It's still an active topic in congress.
WEB 3.0 - “LARGEST ONE DAY GAIN OF MY LIFETIME”
As many of you know, we started a Web 3.0 program because I wanted to share the mind-boggling opportunity I’m seeing in this evolving space.
Well, this weekend there we had one of those screaming opportunities…
It was a raffle… with a total of 32,000 entries and only 7500 winners.
I lost, but we had 4 of our members WIN!
4 of the Web 3.0 Members Won the Auction!
The winners would be granted the right to purchase a Moonbird NFT for 2.5 Eth ($7,500 USD).
Above, see Craig sold his the same day for 12.71 Ether, a gain of $36,900.
The Moonbirds are now worth 16.5 Ether – so Matt’s two below are comfortably worth over $100,000.
Ram won too, the purple jacket is a rare trait… his Moonbird is easily 25 eth.
Tim was the real winner! Tim was lucky enough to grab the 150 most rare Moonbird out of 10,000. Tim’s must be valued close to 35 Ethereum.
As we’ve said, we are seeing life-changing returns in Web 3.0.
ORIGINAL TRADE IDEA: WHAT ARE MOONBIRDS? THE BEST INVESTMENT I’VE SEEN IN WEB 3.0 – 03/31/21
Masters in Trading Digest - Issue 53
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FINAL THOUGHTS
WHAT TO EXPECT IN THE NEXT MIT DIGEST
We will have our next Web 3.0 class this Wednesday. Entry to this class is close to capacity.
Keep your feedback coming into support@mastersintrading.com. We’re excited to share your feedback along with fantastic suggestions for upcoming issues.
Until then, trade smart and always manage your tail-risk.
Thanks for reading,
Jonathan Rose
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