01/02/2025
Today January 2nd 2025, I exited/closed this trade at S&P 5900. 400 points, or 7.2% gain on the trade that I posted/opened/entered long on Sept 11th, 2024. Utilizing SPY Call Options participants booked approximately 450% on this trade.
ROI, (Return On Investnent), is 450% and our risk was capped to the cost of the SPY Call Options.
Risk 1x, profited 4 5x.
In trading there is an expression, (can not eat like a bird, and crap like an elephant).
Most market participants do not cap their risk, therefore their risk is much more than their reward...a mathmatical error for extracting profits from the financial markets.
We entered at a high probability area to catch a wave and once the wave showed us it was over we exited with our profits.
Another important methodology in trading/investing is aiming for the, (meat in the middle). S&P went up to 6000ish. We exited at 5900. If the, (wave), kept printing green weeks, we would have kept surfing the wave higher. We let the wave fizzle out and print two red/lower weekly closes to prove to us that there is a high probability that the wave/trade has ended. We joined the wave bottom once the wave started going higher on my post Sept 11th at 5500. We then surfed the wave to 6000, then let the wave prove to us that the surf/wave ran out of strength. Next we took profits off the table at 5900, or 400 S&P points, or 7.2%. Utiliizing SPY Call Options we 1) Capped our risk to tje price we paid, (1X), and closing out at 450%, (4.5x).
Combining 1), Patience for wave. 2) Capping our risk). 3), Letting the trade/wave run until it proved to us with two red/weak weeks we profited the, (meat in the middle).
Now we sit on our hands and wait for the next high probability trade.
This style of trading 1) Removes the emotions out of trading. 2), Utilizes Options to cap our risk yet at the same time use leverage to increase our gains/reward.
Where else in the 🌍 can an investor make 450% returns in 3 1/2 months with a defined risk? 😎
If an investor/trader used 5% of their portfolio, the investor would have just booked 20.5% on their portfolio in 3 1/2 months and never risked more than 5% of their portfolio.
This is how professionals/institutional money/wise hedge funds manage their portfolios.
Now clear our minds of the long/buy trade and analyze the markets with a neutral mindset. We can always surf another wave higher once the markets present a high probability entry. We can also surf a wave lower if the markets present us with a high probability wave to surf lower, with Put Options.
Combining seasonslity, herd mentaility and a couple other analyzation tools I use I see an opportunity to profit from a stock market move lower.
Again with capped risk, if the trade does not work, we only lose the allocation we use to purchase the Put Options. In the below trade I am utilizing about 2.5% of clients portfolios to the below trade to profit from a stock market move lower/crash.
The beauty of trading with defined risk, we always eat more than a bird and do not crap like an elephant. Professional Trading/Investing! Make more on your winners, keep our losers small. 🤓😎🦁
The picture attached I post January 19th 2022 on all of my social media as Stock Markets topped and by fall of 2022 Dow crashed to a 20%+ Bear Market. (Time stamped forever in history)
Here is my time stamp for 2025 posting today January 1st 2025.
50%+ Stock Market crash, (S&P Put options), are showing signs of demand. Similar to August 2001 Airline Stock Put Options and Defense contractor Call Options previous to the 9/11 Twin Tower crashes.
Smart money, (Institutional 💰), knows what is going to occur before the event occurs and places their bets leaving digital footprints for people like myself that have studied charts back to 1896 with 25,000+ hours of analyzation. (Equivelent to two PHD's).
Hunt or be hunted. 🤓😎🦁
My clients accounts are loaded with S&P Put Options to potentially profit 10,000% if stock markets crash to March 2020 Covid lows.
My clients accounts are 30% in cash making 4.5% in FDIC insured accounts. Their 70% allocations are diversified amongst precious metals, basic materials, energy and broad based stock market, (Dow/S&P)
As most have heard me say:
Bulls make 💰...if on the correct side of a trend.
Bears make 💰...if on the correct side of a trend v
Hogs, (greed), get slaughtered.
I am the Boogyman. Can not find me under the bed, nor in the closet. Yet I was there and made 💰 when no one was paying attention. 🤓😎🦁
The masses as a whole are far too complacent in my perspective. Stock market, Crypto, even dependence on what I call the, (black evil boxes)/cell phones and the power grid.
My Boyscout days and hunting days stuck with me all these years. Boyscouts Motto, (Be Prepared).
*Elon's Mini Me's thoughts from Elon on America*
https://x.com/elonmusk/status/1873917078870384828?t=VXcaHzMDXk1_nR9qxbm4AQ&s=19
JT Stovy Capital
