When you buy fireworks in my town, you have two choices.
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The first choice invites you to adventure at Sam's Club.
Here, you'll discover a curated selection of the lamest fireworks you've ever seen.
They advertise "family-friendly" and "safe and sane."
In other words, the boring fireworks.
The second choice is to drive up to Alabama to get the real stuff.
Roman candles, bottle rockets, and mortars.
With enough cash, you can stage a show that rivals the city's fireworks.
Still, we chose the first one because we've got little kids that won't follow instructions.
This circles back to how we choose to grow our money in this market.
The Nasdaq is up 40% YTD and almost everyone's chasing.
We can expose our accounts to unnecessary risk doing what the majority does.
Or just follow the safe, lucrative path of leveraging stocks with option flow.
I like the latter because the returns are enormous if you structure your positions right.
Like in early 2021 when liquidity demand from the Gamestop squeeze pushed into other market pockets. As paper profits evaporated, many retail traders headed for the exit.
But all we did was buy weekly call options on names that looked ready to squeeze.
Like Kroger, National Beverage Corp., and more.
Why?
Because it was the last gasp of the zero-interest rate policies that had worked so well for a decade and these stocks saw enough "option flow" to break them higher.
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Even though we're still enjoying proceeds of moves we made back then…
I won't encourage you to buy weekly Out-Of-The-Money options like I did in 2021.
This isn't the market environment for such trades.
Still, there are a few setups with option flow you can leverage this summer.
Go here to see how to structure your positions for substantial returns.
To your trading success,
Steve Place
| | | In Case You Missed It
1. Big crypto change on July 31st
2. The "21 EMA" has two purposes
3. Profit-rich zones outside "STRs"
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