Quantcast
How a Retail Trader Can Find Success in this Market

How a Retail Trader Can Find Success in this Market

Posted On October 18, 2021 12:44 pm
By:

I’ll get straight to the point today…

If you are the average retail trader, you need professional help in this market.  Admittedly that’s a self-serving opinion…

But finding trades right now can be difficult.  It’s very easy to miss something when you are looking at a trade and end up getting a bite in the hind end for your mistake. 

For example, a trade I put on in my Options360 concierge trading service this morning…

Here’s the Alert sans the actual trade. (it would be unfair to subscribers to share that.)

Teledoc (TDOC) was a huge beneficiary of pandemic lockdowns and accelerated the growth of remote health care for non-emergency situations.

The stock enjoyed a 400% from the March 2020 low but has now declined some 55% from the March 2021 high.

Growth and adoption rate continue to grow in the high double digits. But, even with the recent sell-off still has a high valuation, but one that it can more reasonably grow into; the recent decline suggests no headway has been made over the past year.

Tele-health will be a permanent secular change for the healthcare system. Heck, I have my first tele-appointment next week, in which my doctor will simply review, and share blood test results. and it will cost half the price of the office visit.

Here are two-year and six-month charts; both suggesting a bottom is forming:

2 year t doc chart

The stock held support in the $120 level, broke the long-term downtrend, and now appears trying to build a small bull flag above the $133-$135 level.

tdoc stock chart 2021

The trick or challenge to this trade is the company reports earnings next Wed. October 27th.

Let’s use a combination of short-term put bull spread to collect premium this week. With a bull call diagonal that surrounds the earnings event.

Do it in two trades; each is independent but should get executed within their price parameters if shares are below $136.

___________________       

This is not a trade you will see most retail traders put on without some professional assistance.  Many retail traders I know would have missed the upcoming earnings announcement…

Or would have seen it and not known how to structure the trade to account for it..

TDOC is hardly unique, to find profits in the markets today you need to structure your trade more than ever.  Then adjust the trade as time goes on. 

It’s a complicated market, and I would be honored to help you navigate it…

Take a test drive to Options360 for just $19.  

It’ll be the best money you’ve ever spent!

To Your Success,
Steve

About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

Leave a reply

Your email address will not be published. Required fields are marked *