CSC IDEA TIER - JULY 4th 24 HOUR FLASH SALE (25% off annual)

JULY 4th FLASH SALE (25% off) - NEW OPTION TRADING PAGES ADDED

Happy July 4th!

This week, we saw unexpected new ATH's in the major indexes, a bullish sign that we were not anticipating. Our correct positioning in the Mega Caps has allowed us to participate despite the persistent negative breadth trend. Ignore the pessimistic voices trying to predict market peaks; ATH’s are bullish. We will maintain our long bias until we see enough evidence of trend deterioration.

It’s foolish to be bearish when the Nasdaq 100 looks like this:

We are ecstatic to offer more tools for our Idea Tier subscribers to trade and profit from the stock market. We just rolled out a new page for options ideas in our Google Sheets Document. The format is similar to the stock idea page, but the strategy is vastly different. Let us explain.

We analyze hundreds of stocks every night for our hedge fund clients. We have noticed a trend of stocks coming out of bases or showing bottoming signals on stocks that are out of favor. These stocks will never make our idea tier because stocks in downtrends are inherently vulnerable, and it is too easy to get stopped out. What makes this strategy interesting is that most of these stocks are not on anyone’s radar. This means that they typically have low implied volatility (IV); in other words, they are inexpensive. The downside is that they are usually illiquid. We call this list the “So Bad It’s Good List,” or the SBIG List.

We started paper trading this strategy over two months ago, and the results were so incredible that we decided to put capital behind our trades. Keep in mind that we are still fine-tuning this strategy, but because of the massive outperformance, we wanted to share it with all of you to assess and consider.

Here is our actual performance after one month of data:

+1400% Cumulative Returns (adding up all the gains and losses); 71% win rate (avg win 119%, avg loss 59%).

We used a theoretical value of $500 for each trade, and it netted almost $7200.

Some important considerations:

*This is a high volume/high turnover strategy

*Average trade size is meant to be small with a goal of capturing 100% trades quickly, selling 50% once that selling threshold is reached, and moving the balance to the original cost to lock in the gains.

*We are targeting at least 3 weeks to expiration, so if our idea doesn’t move quickly, we may look to exit to avoid too much time decay (theta). In that scenario, we may look to roll the options out further to allow more time for the trade to work.

*If the stock moves against us and breaks a key level, we will exit and move on.

*We also like this strategy for when the market is in a selling regime. In fact, our best option idea last month was in puts for TSCO (~330% in one day). We were fortunate enough to buy this right before LESL took down guidance, which also hit most stocks in this sector. Regardless, the chart was telling us something was amiss. This will hopefully allow us to capture lower-risk entries in single stocks when the market undergoes a correction.

Another example of what we are looking for is in VRT. This stock has been battling to recover the important 87.50 pivot, but it’s quite volatile and too easy to get stopped out. Thursday it did appear to find buyers at the 100-day MA, which was also in the vicinity of the earnings white gap window. Getting defended at important junctures is meaningful, and we assumed that this would rally in the ST. We didn’t think it would rally as much as it did, but nonetheless, this provided us with a low-risk entry and allowed us to sell our option position for +60% in one day.

Lastly, and as we showcased in our last mid-week report, the market breadth is finally turning. This is evidenced by the McClellan Summation Index (MSI) about to cross the 10-day MA. Improving breadth means more participation and better outcomes for our idea performance.

Here is the performance of the current stock idea tier (we added average gain/loss).

Here are the details of our sale:

If you are not a current member of our Idea Tier, we are offering a 25% discount to the annual plan only ($900). This discount is available only for 24 hours and for subscribers to our newsletters.

We hope you will consider joining us.

Have a great Holiday!

*For more information on TD Buy/Sell Set up, TD Sequential or Combo Countdown, Demark Propulsion, please visit www.Demark.com

CSC Team

Coiled Spring Capital LLC, Founder
http://www.coiledspringcapital.com

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