This Was Fascinating to Me [and Something Special For You]…

This Was Fascinating to Me [and Something Special For You]…

Posted On October 25, 2021 10:56 am

Dear Reader, 

This is Matt, I run things behind the scenes here at Options Sensei.  I wanted to take a moment and thank you for reading our newsletters.  We work hard to bring you useful, high quality information on a daily basis. 

That said, I want to share something with you that was fascinating to me.  

Steve just put on a trade this morning in his concierge trading service, Options360.

Nothing unusual about that really…

The fascinating part was how insightful and counterintuitive the trade will seem to most retail traders.  

Let me just share the alert with you: 

The mega-cap tech names of FB, AMZN, AAPL, MSFT and GOOGL all report earnings this week. These 5 companies account for some 43% of the Powershares 100 (QQQ) ETF

I’m pretty sure they will be strong but there is a distinct possibility of a sell news reaction. Of more import will be if any issued reduced guidance whether it be from supply china issues, a shift in spending from goods to services or slowdown in ad revenue whether from changes made to iOS data tracking or simply some companies don’t have the inventory (or have sufficient demand) that they reduce ad spending.

Whatever the case it seems there is some downside risk to the names and hence the QQQs

Let’s use a diagonal on a 2×1 contract to get some downside exposure through next Monday. Remember, we will be able to roll into Wednesday’s expiry to reduce cost.


I can’t give you the trade because people actually pay for that insight, and it wouldn’t be fair to them.  However, you can get the trade – just take a test drive in Options360 for just $19.

What I love about this trade is how Steve combines technical and fundamental factors and comes up with a thesis about how these stocks may go down even though he expects strong earnings.  

Intuitively, most retail traders would think a solid earning report would mean a rise in stock prices.  

Steve understands that isn’t necessarily true, and he helps his subscribers navigate the market and profit in these crazy market conditions.  

That’s why I am so proud to be associated with Options360, and why I urge you to take a moment and register for your trial subscription right now

I can assure you it’ll be the best money you ever spent!



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.