TR PRO All Access Club:-Leveraged ETF Option Trades + My Biggest Stock Recommendation EVER!
Dear Subscriber,
First off--we are taking a bow on our mREITS call on the servicing rights bailout based on our contacts in DC. They told us two weeks that the FHA "could not let the servicers of government-guaranteed mortgage securities ($5.2 TRILLION WORTH) get hung out to dry on making principal and interest payments to bondholders on mortgages that took the forbearance gift from the $2.3 trillion Federal CARES Act."
As expected, that FHA bailout for government-guaranteed mortgage services came this morning. Our mReits are up 15-20% on the news and firmly in the green (along with USAC--woo hoo!). Also taken a bow on USAC--we knew they would never cut their dividend! Still a buy under $8. We have at least 2 more natural gas midstream plays that have already affirmed their dividends--above 25-30%.
Second, since I am basically a TEXT person or DRIFT person (the chat service on our site) during the workday (WAY too many emails per day), here is my personal TEXT number if you really need to get a hold of me on a position or trade you hold (301) 412-8622. This is restricted to ALL-ACCESS members only (for obvious reasons.)
If you need a quick answer, and we do not answer you on DRIFT chat, feel free to text me (since many of you already do LOL!)
In the evening I do respond to Facebook Messenger --so If that is your communication jam, friend Tobin Smith (my personal page not my Author Page) on FB and I'll kick some people off my page to make room. https://www.facebook.com/tobin.smith
All Access Leveraged ETF Option Trades
#1 If you hold the IWM and SPY Puts Options we advised mid-April, I'd take use sell stops to take profits on the IWM and hold the SPY.
#2 Here are the Leveraged ETFs we are trading for our managed trading accounts.
The strategy is pretty simple: When these ETFs break down through key support (20-50-100-200 day) we buy call options on the leveraged SHORT ETFs about 10% lower or put options on the leveraged LONG index ETFs.
Conversely, when they hold key support we buy call options on the long ETF or put options on the Short ETF.
The issue is always how expensive are the long vs. short ETF options.
Thesis: With the 25% SPY run from 2350 to 2850 in such a short time period post the panic-forced selling, that move was too much too fast and the classic short-covering Bear Market rally fueled by 67% of short-covering trades. For instance, the 3X Semiconductor SOXL has peaked short term and broken key support at its $115 20-day trading support.
We shorted the 3X long SOXL with put options $100 May 15 expiration.
We are not an option trading service but we did promise to share our favorite set-ups for our option junkie All-Access members (and you know who are!).
Same story with TQQQ, SQQQ, IVG (cloud stocks), SHOP--we avoid TSLA short because it is such a cult stock.
Right now we are short SOXL IVG SHOP and long SQQQ. THAT is likely to change in 24-48 hours.
We will have an update for all on what we are calling the post-pandemic "America 2.0" and "Global Commerce 2.0" shortly.
PS: Part of our investment thesis is for both America/Global 2.0 scenarios is that natural gas is going to take the lead in the hydrocarbon extraction and transportation world for at least the next 12-18 months. We have 3-4 solid gold Ultra Income plays in midstream companies that have A) already reported they did not cut their dividend (like USAC--told ya they would not cut dammit!) or ones that have cut their divvy (which gives us huge income upside at these prices) and that have gone UP a bit after the announcement (which means the cut was less than investors assumed).
2) We are assuming that 21st-century science is up to the task of developing a vaccine-like Modern'a MRNA vaccine and Pfizers's already in trial and REGN's COVID-19 therapeutic plus others. Much of the science fire power being thrown at this pandemic did not exist in the SARS or swine flu pandemics.
Note: I was too chicken on MRNA shares--up $10, down $10. Based on info from our contacts and the FDA and NIH, it is very safe to assume the NIH did not just pour $500 million into MRNA to scale up IF they were not of firm conviction their vaccine works.
Just waiting for a pullback--our goal is to MAKE money and not hold trophies.
PS--VERY SPECIAL ANNOUNCEMENT: THIS IS THE NEXT $100 BILLION COMPANY And You GOTTA GET IN NOW BEFORE THE IPO MERGER in Late May or JUNE
We have a VERY special new transformation company to add to our growth stock list that I have labeled "The New Tesla that we will buy under $18!.
The company is Nikola Corporate. They are more game-changing than Tesla BECAUSE THEY ALREADY have $10 billion and 3 years of manufacturing ALREADY booked with deposits from EVERY large transportation company in the world. Long haul trucking companies, Anheuser Busch, ABInBev, Pepsi, Wal-Mart, Amazon, Fed-X, Ryder and many more.
Why? Because every major company that uses long haul transport knows that diesel fuel is getting outlawed in regions all over the world and that this fuel-cell charged electric truck makes their company a GREEN and global warming solution and not a global warming villain.
There is a $500 million PIPE transaction that closes with the merger is that is led by Fidelity, Morgan Stanley and my favorite "value investor" Jeff Urben and his Value Act Spring Fund. There is a $2 billion private equity tranche as well available that they have already closed on another $500 million to industry strategic partners for $1 billion total raise.
The best news? The post-money valuation is just $3 billion. I am not exaggerating that as this rolls out, it will be another 30x-40x winner with just $40,000 in stock now becoming our next "Meltdown Millionaire" investment.
I have spent time some incredible time with the management (they are in Phoenix; I am in Scottsdale).In fact, in my 20 years of editing investment newsletters, almost every 30-40X winner we have ever recommended (APPL/Monster Beverage/ ANSS/WFR/CREE/XM Radio/AMD/Nvidia) came from one of our investment research syndicate.
In this case I first learned about Nikola late last year from one of our TR Experts Alliance members who is a fuel cell engineer and works for the company.
The REALLY BIG IDEA: Carbon Free Commerical Transportation-as-a-Service at 50% LOWER Total Cost
The Nikola transformative vision is NOT to build electric trucks. Yes, they are building very amazing long haul e-trucks. But those trucks batteries are charged by an onboard fuel cell by 2021. The Nikola truck goes 1800 miles before it gets a refill of...hydrogen! In 20 minutes or less, they are ready to roll another 1800 miles without a fill-up.
But what Nikola is really selling is an unbeatable value proposition: They cut the cost of owning, servicing and fueling a long haul (or short-haul) truck by over 50% vs. owning, servicing, repairing and diesel truck. The driver cost is the same no matter the truck (but the Nikola is 100% set up with autonomous driving technology when autonomous truck transport is legal). They are building a national network of hydrogen fuel-based stations on EVERY major regional and long haul transportation corridor for ANY Electric Truck. They can charge an electric battery truck or a Nikola Fuel Cell that charges the battery on the Nikola truck.
One day in the next 24 months ANY Nikola Truck can be leased on a transportation-as-a-service basis--Nikola plan is to charge just$1 dollar a mile for the trucker to lease a Nikola truck with 100% service, parts and hydrogen ALL included in the lease. This 50%+ lower total cost of ownership and operating leaves the diesel truck in the dust bin of transport as in the horse-and-buggy AFTER Ford brought out an affordable Model-T.
When up and running, the ZERO carbon footprint is so transformative I wanted you to see this amazing opportunity for yourself before we put this out in a promotion we are starting next week.
I Am POUNDING the Table Buy for VTIQU Under $18-20. We are lights out crazy about this company. I am pounding the table for you to buy the VTIQU today which has one share of stock and a warrant to buy another share at $11.25--and put it away and not look at it for 24 months.
Here is my link to the business merger deck--You MUST read this amazing deck which is no longer available to the public (but I got one anyway--thanks to our insider).
Here is the video analyst introduction
Here is the first announcement on CNBC of the merger
Here is the Fox Business interview (you gotta let the ad run)
Here is the press release on the merger and company.
Here are just a few of the 413 Articles on Nikola.
You have to be in BEFORE the reverse merger transaction close in late May/ mid-June. Because they are in their quiet period until the merger closes, VTIQU will be under investor radar except for our thousands of new subscribers who will be getting our special report on Nikola starting next week as part of their new TR PRO subscription.
PS: My investor group plans on owning and controlling a significant number of shares AFTER our newsletter promotion cycle is over--early bird gets the worm!