How Our “Secret Volatility Weapon” Just Made Us 101% in EFX

If you’ve been following the market these last few months, surely you’ve noticed the incredible amount of volatility. With prices whipping up and down huge amounts in a single day, Wall Street can seem like a daunting place – enough to make you want to bow out of the market entirely. Unless you know what to look for…

Stealth Profits Trader members aren’t ready to take their ball and go home yet. In fact, these past two months have proven incredibly fruitful, yielding 5 opportunities to double their money – even amidst all this volatility!

Historically, short positions (in which we profit if the price of a stock declines) have not been a huge part of the Stealth Profits Trader portfolio, but I always keep it in my back pocket as a “secret weapon” for such times. Given the crazy market conditions, it is important to be flexible and adjust your trading strategy to take what the market gives you and capture profits.

And we’ve seen some great profits using this strategy recently.

Today, I want to recap one of our many successful recent trades to show you that, given the right trading strategy, there incredible profits to be made, even in unstable market conditions.

While the S&P 500 and the Dow bounced all over the place in late November, I advised Stealth Profits Traders the following:

Here’s a company that has had horrendous problems with safe keeping the credit data that they hold on almost everyone – Equifax (EFX). The stock has recovered to a key resistance level, but the stock’s fundamentals remain flawed. We’ll short the stock and/or buy puts to take advantage of the stock’s next drop. Here’s the chart:


Sell Short: Equifax, Inc. (EFX) at the best available price.

Stop-loss: Apply 2% of your core capital or 5% of your speculative capital to this trade and set your stop-loss at 5% above your entry price.

For your profit-taking exit: Buy back 50% of your shares when you gain 10% as price drops below your entry price and hold the remaining position for further guidance.

Buy: EFX December 28, 2018 $101 strike puts (EFX181228P00101000) at the best available price.

Stop loss: Apply 1% of your core capital or 3% of your speculative capital. We are reducing our capital exposure because we will open the position risking all of premium with the intention of adding a stop as the trade progresses.

For your profit-taking exit: Sell 50% of your contracts at 100% profit and hold the remaining contracts for further guidance.

This is one of our few short sales we’ve done recently, which we use when markets or sectors provide us with good profit opportunities.

Short sales can be really profitable, really quickly. We’ve captured quick 100% gains in the past in NFLX, APPL, and W puts as those stocks dropped temporarily.

The process is easy.

For most accounts, this is just a different button to push to initiate the trade – please ask your online broker for help if needed.

However, if you’re not comfortable shorting a stock, then either use the bonus option play and buy the put contracts, or take a pass – the next trade will be coming soon.

Please note: while this stock trades an average of half a million shares per day, the options trade with lower volume, and thus require care in entry.

This means that the spread (the difference between the bid and ask prices) on these options is pretty wide.

Seasoned traders will find that the best entry price can be had by placing your buy price in between the bid and ask price, then being patient for a potential fill.

In just one week subscribers had a chance to double their money on the put option recommendation, and I happily sent them the following instructions:

Last week, Stealth Profits Traders bought puts on beleaguered Equifax Inc. (EFX) with the expectation that this company would continue to show weakness relative to the market, and give is a great profit during volatile pullbacks. Mission accomplished! EFX has been much weaker than the market and hit our first profit target for a 101.4% gain.

Actions to Take:

Sell: If you have not already done so, sell the first 50% of your contracts in: EFX December 28, 2018 $101 strike puts (EFX181228P00101000) at the best available price.

Stop-loss: Move your sell stop on the remaining 50% of your original contracts up to $2.45 to protect profits.

For your profit-taking exit: Sell the remaining contracts at $4.26 or higher

Later that same day, the EFX put options hit the $4.26 profit target I set, and Stealth members had a chance to sell the other half of the position for an awesome 135% return!

For those that were in on the short position, on December 20th I sent an alert telling them to:

Buy Back: If you have not already done so, buy back the first 50% of your shares in Equifax, Inc. (EFX) at the best available price.

Stop Loss: Move your stop down 5% below where you entered to protect profits while giving the trade some room to run.

For your profit-taking exit: Buy back the next 25% of your shares at a 12% gain and hold your remaining share for further guidance.

Sure enough, later that same day, EFX continued to fall and achieved the solid 12% gain we were looking for, all in just three weeks!

Now, I want to clarify that I’m not giving you this recap looking for a pat on the back, but in a genuine effort to encourage you in these tough times. Making money is always possible in any market condition, IF you know what to look for. It would be my great pleasure to assist you in navigating the sometimes-rough seas of investing. This trade opportunity on EFX was just one of over 40 trade recommendations that delivered Stealth Profits Trader members chances of at least 100% profits in 2018. To learn more about all of the benefits of becoming a subscriber, and how you can make 2019 your most successful year, click here.

Great trading and God bless you,

D.R. Barton, Jr.

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