Issue 69: My Money Don’t Jiggle, Jiggle; It Folds - Masters in Trading Digest

My Money Don’t Jiggle, Jiggle; It Folds

Welcome to Issue 069 of Masters in Trading Digest.

WOW, what a start to the week!

On Sunday, Masters in Trading members found TWO trade ideas in their email inbox:

  1. Retail Pair Trade:  $ANF vs. $AEO
  2. Gold Miner Trade:  $GDXJ 

Today, we review these trades and expand on how to manage these positions once they start moving.

We are seeing an obnoxious amount of Unusual Options Activity in the retail sector.

Expect wild swings to continue. Where there’s smoke there’s fire!

Last Note – Yesterday, I introduced a new EDGE tool called CURRENCY EDGE.

The webinar is available to watch right now.

It’s something we’ve never done before…

Wiretapping Wall Street’s Elite Traders

As a former market maker on the CBOE, I have a unique perspective on how to value stock options. My goal is to simplify the lessons I have learned throughout my career for the benefit of our MIT Digest Subscribers. To do this, we have built cutting edge technology that scans the options market every single minute of every single day.

We call this Options Scanner, Wall Street Wiretapper.

The scans in the Wiretapper are audited in the background by an artificial neural network (ANN) – a system that is designed to consider examples, generally without being programmed, and then come to its own conclusions over time.

For example, an ANN might learn to identify images that contain tractors, and then use those results to identify other tractors in other images, constantly learning over time.

How To Use AI in Options Trading

Every Sunday, we share our best options trades for the week.

This week we sent Wall Street Wiretapper Options Members two trade ideas that showed up in their email inbox Sunday afternoon.

The first trade is a bet on gold going higher because the physical gold market is getting squeezed.

Look at those Gold Inventories spike!  At first, we thought this data might be a typo, but in fact, over $100m of physical gold has been moved on 05/15.

Notice the behavior of the /GC (Gold Futures) after this trade?

We remain extremely bullish on the July $GDXJ calls.  Today they are back to trading at $1.05.  Yesterday they traded up to $1.30.  Remember, if you buy 1 option at $1.05, you have a $105 risk – you can never lose more.

The second trade idea we shared is a fun one. Here’s the chart, it’s a relative value trade between a few retailers.

$ANF released earnings yesterday and traded down 35% all the way down to $18.30.

Heard in our Discord

Now that $ANF has sold off, the other part of the trade is holding long calls in $AEO.

 “for those looking to have lots of fun with some $ANF profits, consider purchasing the $13 call ins $AEO for $.90 or so”

This was an incredible trade in such a short amount of time.

Congratulations Wall Street Wiretapper Options Members!

Masters in Trading Digest - Issue 69

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FINAL THOUGHTS

WHAT TO EXPECT IN THE NEXT MIT DIGEST

Last night’s webinar was a blast!  Thank you to everyone who joined us live.

Take the time to watch this one-time presentation. 

I’ll make this promise to you:  “the juice is worth the squeeze!”

  • We discuss what is working right now.  
  • The difference between trading and investing
  • Currency trades to take advantage of Volatility
  • Trading Futures with defined risk
  • Actionable idea that you can trade today

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

P.S. Attention Subscribers – A Special Offer For a Very Special Week 
This foundational Options Workshop is where our traders go to get started learning with us.
I've discounted it to our lowest rate ever.
If you're not fully satisfied within 30 days, we'll give you your money back.
As for the course, keep it. Consider it my much-appreciated gift to you for being a loyal subscriber.

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