Tuesday, February 6, 2024

Watch this winning trade unfold...

Find out how our team of trading experts pinpointed a call play with +100% potential -- and totally nailed it (if we do say so ourselves...).
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Dear Trader,

Over the past several days, we've shared with you some of the insider knowledge and tools that we use to drill down on triple-digit winning trades -- exactly the kinds of big-thrill, high-adrenaline profits that drew us all to options in the first place.

Today, we'll do you one better by taking you behind the scenes on one of our real-life 100% trade winners. Using a combination of technical and sentiment analysis, coupled with a close examination of implied volatility (IV) levels, our expert analysts were able to identify an options play that doubled subscribers' initial investment... in a matter of mere weeks.

For the full trade breakdown, keep reading...

Predicting the Pop in a Soda Stock

In mid-May 2019, subscribers to one of our Sunday night options recommendation services doubled their money by playing our PepsiCo, Inc. (PEP) July 120 call option recommendation. Impressively, this short-term options trade hit its 100% profit target while the soda stock rose just over 6% on the charts!

Learn More

When we initially recommended the call in our April 7 email to subscribers, PEP stock had just touched a record high of $123.19 on March 27. Former resistance in the $120-$122 neighborhood -- which also marked a 10% year-to-date gain -- then stepped up to provide support on a pullback, creating an appealing technical entry point for a bullish play (particularly given PEP's tendency to outperform in the April-July period, as noted by our Quantitative Analysis team).

The sentiment backdrop also supported a call trade. A 48% spike in short interest since February created room for short-covering tailwinds to lift the stock. Plus, nearly 60% of covering analysts had given PEP a tepid "hold" opinion at the time, leaving the door wide open for future upgrades to lure more buyers to the table.

Finally, our recommended call had a leverage ratio of 15.1, meaning it would only take a 6.7% jump in PEP shares for the option to achieve its target profit of 100%. In other words, the options trade provided substantial leverage over a comparable stock trade.

How it all played out...

PEP initially stayed quiet after our early April recommendation, but the stock took flight on April 17 after a first-quarter revenue beat caught pessimistic traders and analysts by surprise. At least seven brokerage firms lifted their PepsiCo price targets after that well-received report, and Wells Fargo hiked its target for a second time in mid-May.

This bullish upswing in analyst sentiment coincided with a mass exodus by the shorts. During the two-week period ended May 1, short interest on PEP dropped by 10.2% as the stock ran to a string of new highs.

This combination of a positive fundamental driver, coupled with Pepsi stock's strong price action and its sentiment backdrop of unwinding pessimism, created the perfect setup for our subscribers to achieve 100% profits on their PEP July 120 calls on Wednesday, May 15 -- less than six weeks from the initial recommendation date.

Learn More

At Schaeffer's, we believe that every individual investor can learn what it takes to trade options successfully and profitably. But unless trading is your full-time gig, the tricky part is actually finding the time to do the research necessary to uncover those profitable trades before the rest of the crowd is already on the bandwagon. And that's where we come in.

Schaeffer's Weekend Trader Alert issues a new, thoroughly researched call or put recommendation every week -- and each trade comes complete with a detailed explanation of why we think that particular option is your best bet for big profits in the weeks ahead.

Plus, all our recommendations are based on our proprietary Expectational Analysis® methodology, which specifically targets stocks that are poised for big breakouts.

Every Sunday at 7 p.m. ET, you'll receive a new options recommendation in your inbox. And you'll never have to worry about the details, because we provide everything you need to manage the trade, including a target profit and time-stop date! You're never left wondering what to do -- we'll guide you every step of the way.

As a special "thank you" for choosing Schaeffer's, we're offering a special deal on Weekend Trader Alert right now. You can take advantage of our powerful full-service recommendations at a huge savings to our usual prices if you claim your place within the next two days!

Normally, Weekend Trader Alert retails for $149 per month, given the volume of trades and the ambitious target profits.

But as a special VIP-only offer, you can trial a full month of these fan-favorite trades for just $10!

This offer is only open to select Schaeffer's members. Click here to claim your spot before it's too late!

Act Now

All my best,

Bernie Schaeffer
Chairman & CEO
Schaeffer's Investment Research
service@sir-inc.com
http://www.schaeffersresearch.com
1-800-448-2080
1-513-589-3800 International

P.S. Let us do the heavy lifting while you collect the big wins! Take advantage of this limited offer now.

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Cincinnati, OH 45242

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Although there is significant profit potential associated with buying options, there is also the risk of losing one's entire investment in any individual trade. In any option buying approach, it is expected that losing trades will be more numerous than winning trades. The goal is for the average gain to be significantly greater than the average loss so that the bottom line is profitable. Prior to purchase, ensure that you have a broker that allows the trading of options and that you are approved to trade options.

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