Wall Street’s” Only Free Lunch “is happening this Friday.
Yesterday, I introduced the “Only Free Lunch on Wall Street” concept to you. It’s a once a year market trend that allows you to grab stocks for a bargain price and ride them to a massive profit in two months.
Now, I noticed this pattern when I was younger. As I watched the market, I took note of several stocks being dumped. I watched as their prices nearly bottomed out near the 52-week low. It was a sell-off like I had never seen before.
So, I began to wonder what the bargain-priced stocks could do for me. And that’s when I thought to myself, why not pick up Wall Street’s “scraps” and score big on these beaten-down names? And that’s precisely what I did. You wouldn’t believe how surprised I was the first time I cashed in on my “free lunch” from Wall Street. And since then, I’ve been doing it every year.
Where’s the money?
Now, I’m not running with just any stock that’s down on its luck when it comes to this opportunity. No, I’m looking for stocks that match the specific criteria I’ve established. By using these criteria it allows me to lock-in only the best profit opportunities.
When it comes to Wall Street’s throwaways, I’m looking for five things…
- Stocks that are optionable.
- Stocks with a current value of over 200,000
- 0-10% above the 52-week low.
- Option contracts priced above $3.00.
- Options with an average true range (ATR) of $0.50.
Now, once these criteria downsize my list of prospects, I’ll also be removing ETFs. For me, they just don’t offer the same profit potential as stocks do. And then, I have my list. From there, I will be looking to buy call options that are at least two months out. You see, with this pattern, we typically see the biggest returns from late December to early February.
During this two-month time, we see the stocks that fit these criteria being dumped by Wall street only to be pumped back up with volume, typically skyrocketing the price. And here’s the thing, this “free lunch” happens no matter what the market is doing.
For example, just last year, the bargain stocks saw a 24.9% change from December to February. The NYSE Composite moved up only 15.1%, meaning that his pattern outperformed the market by 9.8%, making for a pretty nice return. And when you look at the overall history, you’ll be even more shocked. Over the last 45 years, “bargain stocks” have moved up 549.7% in total while the NYSE only accounted for a 146.7% uptick.
Quite a jump, right? And now, we’re gearing up for this pattern to kick off once again.
How do I get some?
Needless to say, I’m looking forward to seeing how this pattern performs after such a volatile year. And I’ve already got my sights set on eight stocks that I think will fit exactly what we’re looking for. And on Friday, I’ll be revealing my “bargain stock” list to every single subscriber of my 1450 Club research service.
And the best part is that you still have time to grab your seat at the table for this free lunch event. And
I’m extending an exclusive invitation to Profit Pregame members right now. So, join me on Friday, December 18, to set yourself up for a shot at some nice profits to really start 2021 off on the right foot.
But you better hurry because the guest list is filling up fast and I would hate you to miss it.
So, click here and gear up to start the new year off right.
I’ll see you Friday.
In the Spotlight: Another round of disappointing numbers for retail…
Investors across the board went into November with high hopes. Typically one of the busiest months in the year in terms of retail – many expected to see hope on the economic recovery horizon. But the numbers are in, and the future of retail is as unsure as ever.
You see, retail sales dropped last month, signaling the consumer recovery is stalling. And this isn’t really a surprise seeing that the pandemic continues to worsen across the United States. But regardless – the numbers were extremely disappointing. After economists predicted just a small drop in consumer activity – settling on 0.3% – sales fell 1.1% last month from October.
And this number had economists across the board raising their eyebrows…
“The numbers are much weaker than expected,” Gus Faucher, chief economist for PNC Financial Services Group, said in an email. “The economy looks much softer at the end of 2020.”
Clothing stores, restaurants, electronics stores, and gas stations led the pack as the biggest losers while grocery stores and online retailers ticked up. And speaking of online retailers, it’s not all doom and gloom. Spending at online retailers is actually up 29.2% from the same time last year. But it’s the same old story for brick-and-mortar stores, which saw a 52% decline in Black Friday foot traffic this year.
With that said, I’ve said it once, and I’ll say it again – retail, specifically the names that aren’t focusing on their online presence, is a sector I’ll be staying away from. But if you’re someone who enjoys retail names, zone in on those who rely on e-commerce for the majority of their business, and I think you’ll do well.