Our members receive access to all of our insights, and they get an alert straight to their phone each time we make a trade. When we see a great technical setup, you see it with us.
Below are a few of our trades that netted our members incredible returns. We recently added a Robinhood account to our portfolio to take advantage of the free commission.
2017 Returns: 40.17%
2018 YTD Returns: 13%
We took a long term trade in JEC after it had suffered some weakness. We knew that with enough time we would see the stock take out its prior highs, and we waited until a final push higher before taking it off. We had a month and a half of time left on these, but the risk was too high at the elevated position, so we took it off, happy with the win.
CTRP is a great example of the value in picking the right entry point. We entered right before the stock dipped 5%. Despite the fact that the option was down over 50%, we continued to hold our position, convinced it would head back to yearly highs.
The stock rallied hard off its lows, returning 27% over a month and a half span. The options we purchased converted that into a 500% winner. Minotaur members were glad they held on, even when it looked like the trade wouldn't work.
We've had a lot of success with IBM trades over the past year, with news-based selloffs creating multiple buying opportunities. For this particular trade, the downward wedge was consolidating near the lower end of the range, and we swung big on some monthly options that exploded into some big gains.
The key takeaway here is the trade itself. We bought ourselves just enough time to let this move play out. We avoided earnings in order to lower the cost of the options, and we ensured that we bought the options in a good technical spot. As you can see, the movement out of the downward wedge can be explosive, and a historically slow stock turned multiple 2% up days into 587% for Minotaur members.
When it comes to short-term option trading, our theory is simple; minimize downside risk and let your winners run. Our weekly option trades tend to be lower probability scenarios, meaning that you don't win every time, but when you do win, you win big and are able to cover any prior losses.
As it relates to BIDU, we noticed a bottom forming around a trending strength point over a few days. We saw the volume slowly dissipate on the bottom, and found the ideal time to strike, hours before the stock took off. The hardest part about this trade was holding the option contracts through every day of upward momentum without selling for a smaller profit. The Minotaur Team is here to guide you through these trades, to maximize profit on these stock movements and take the emotion out of the investment.
This Lululemon short fit one of our favorite trading styles - trade the most overvalued stocks in a negative trend (retail). We searched for the growth companies in a failing sector, and bought short-term puts based on where we predicted the stock would fall after reporting earnings. After a previous gap down last earnings season, we noticed investor sentiment becoming less and less confident, setting up a very favorable volume profile for another gap down. We calculated that another earnings disappointment could send the stock down more than 15%. As we predicted, the stock took a sharp decline after reporting, falling over 18% a single day.
While Lululemon was our largest victory in the retail space, we also enjoyed victories over Nike and Abercrombie and Fitch using the same strategy. Because all of these companies report in the same general time period, it is easy to lock in wins in quick succession. While we know earnings trades can be seen as risky, we always try to put our members in the highest probability win scenarios.
The FANG group (Facebook, Amazon, Netflix, and Google) is always on our radar due to their longstanding history of leading markets higher. Stocks that are in a positive trend tend to follow the same rules, putting in higher highs and higher lows across weeks and sometimes months. We identified and executed our trade on NFLX based on the low it put in just days before rocketing to new highs. We point out lows like these every week to our members, and offer advice on the best ways to trade them based on their risk profile.
If we see value in how cheaply an option is trading, we usually take a deeper look. At times, the sentiment on a stock is so bearish that call options to the upside are extremely cheap and therefore low risk, high-reward.
TWLO was attractive because it fit this profile, and was sitting at a favorable technical position with an uptrend forming at recent lows. We knew a breakout was imminent with all of the multi-day consolidation, so we pulled the trigger, and netted our members a nice +300% gain on the move that followed over the next two trading days.