
Are We Off to the Races Again?
By: Steve Smith
As I write this the Dow is experiencing another incredible day. Right now it’s up over 450 pts and is well past the all-time high set back in February.
These last few weeks have the bulls out in force going long on this market.
Yes I know – my hedged, conservative approach looks boring right now…
But when a market is going up this fast it can turn even faster.
Will it?
I don’t know, but I learned my lesson about “sure things” on my first trade.
To make a long story short, in October of 1989 United Airlines was set to merge with Northwestern for around $200 a share.
UAL stock had been trading around $190 for over a month.
The 150 put which expired the next day was trading $1 or $100 per contract. I sold 10 thinking “I can’t believe how easy this is, I’m gonna collect $1,000 for doing nothing when these expire worthless tomorrow
The next day the merger deal was called off. UAL plummeted $100.
I lost $50,000 that single first day.
That’s why no matter how good things look, or how much of a “sure thing” we are looking at, I NEVER get my Options360 subscribers into naked trades.
Everything has a predefined and limited downside.
Get Access to All the Trades for Just $19
Boring? Maybe.
However, if your goal is to consistently build wealth then boring can look pretty good when you beat the pants off the S&P year after year….
- 2015: up 125% (S&P was down .73%)
- 2016: up 32% (S&P was up just 9.54%)
- 2017: up 48% (S&P was up just 19.42%)
- 2018 up 67% (S&P lost a whopping 6.24%)
- 2019: 77% (S&P up just 27.9%)
- 2020: YTD 38% (S&P up just 11.1%)
Here’s my point, don’t be fooled by flash in the pan returns.
As the old saying goes, “don’t mistake a bull market for genius.”
The “genius” is the guy who can keep his OVERALL performance well above the market for years on end.
That’s what I do for my Options360 subscribers.
I find the trades then manage them to make sure we are consistently beating the market.
Now you can get access to all of my research and market-beating recommendations for just $19.
Click here to check out everything you get with your trial subscription..
To Your Success,
Steve