Elon Musk’s Next Billion-Dollar Venture Is in Motion Right Now

The market could soar, or it could tank. You could win either way... ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

"This trade allows you to win if you get a big market move in either direction." Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance Opportunities like this one come around very rarely. In fact, this year, you may have only three of these opportunities and maybe none as big as this one. On September 21, the Federal Open Market Committee will meet to deliver its verdict on interest rates. Will it be 75 basis points (0.75%) or 50 basis points (0.50%)? Or will it be something else? The betting odds are for 75 basis points, but only the Fed knows for sure. What I do know is that the size of the rate hike matters less than what the chairman of the Federal Reserve says. That's right - what he says. After the announcement at 2 p.m. ET, the Fed will announce the size of the hike. A few minutes after, Jay Powell, the chairman, will give his remarks and take questions. That is when the fireworks usually start. The market could soar, or it could tank. It could also do nothing, but that's unlikely if history is any guide. Odds are we will see volatility! 20 Times BIGGER Than the '90s Internet Boom! Wall Street thinks it "will be worth trillions." J.P. Morgan expects it to "infiltrate every sector." And BlackRock compares it to "the smartphone of the early 2000s." Click here to see why the world's top investors are getting into XRI, the most important tech revolution of the 2020s. Here's your chance to do a trade called a strangle. It's one my partner, Bryan Bottarelli, does all the time around earnings. And I use it as well around big announcements. When opening a strangle trade, you are betting both ways by using options. You buy a put option (betting the underlying security will go down), and at the same time, you buy a call option (betting it will go up). The key is how much you pay. You have to expect that the move in one direction or the other is dramatic enough to cover the cost of both your options and more. A strangle is when you buy an out-of-the-money put and an out-of-the-money call (it's cheaper than an at-the-money option). In this case, you would look to the S&P 500 or Nasdaq 100 options that expire on September 23, two days after the meeting. You could use either the SPDR S&P 500 ETF (NYSE: SPY) or the Invesco QQQ Trust (Nasdaq: QQQ), which tracks the Nasdaq 100 Index. Use the one that is cheapest, as both will usually react by the same percentage - although the Invesco QQQ Trust usually has an edge. You would balance the position by buying a put and a call on each ETF so that if you get a move higher or lower, you're in the game. Placing a one-way bet could mean a bigger payoff - but only if you get the direction right! Playing a strangle allows you to win if you get a big move in either direction. YOUR ACTION PLAN We may do such a play in The War Room the week of the announcement. And we might enter it before if we want to see whether there will be an early arrival of the market's jitters or euphoria. It's the type of play we do over and over again. One member even used the gains from such a play to buy his daughter a car! Learn more about this powerful trading technique here. "Just Released: Our Top 5 Trades - All for 80% Off" Sign up for Trade of the Day Plus for one month of research! FUN FACT FRIDAY Institutional traders have been loading up on downside protection. As you can see below, during last week's panic, hedging was three times more extreme than in 2008. Traders bought $8.1 billion worth of put options. They bought less than $1 billion worth of calls. Increased hedging from Wall Street could intensify market moves - as dealers dynamically hedge their short-gamma exposure. We're prepared in The War Room with our Crash-Proof Asset. It cleans up when markets drop. Learn more here. INSIGHTS YOU MAY HAVE MISSED Double-Barrel Bear Market Tamer Insiders Can't Wait to Get Their Hands on This Stock! Do You Own These 3 "Down Market" Assets? The Ultimate Bear Market Play Follow Us on Instagram! FACEBOOK TWITTER   Monument Traders Alliance   You are receiving this email because you subscribed to Trade of the Day. To unsubscribe from Trade of the Day, click here. Questions? Check out our FAQs. Trying to reach us? Contact us here. Please do not reply to this email as it goes to an unmonitored inbox. To cancel by mail or for any other subscription issues, write us at: Trade of the Day | 16 West Madison Street | Baltimore, MD 21201 North America: 1.800.507.1399 | International: +1.443.353.4977 Website | Privacy Policy Keep the emails you value from falling into your spam folder. Whitelist Trade of the Day. © 2022 Monument Traders Alliance, LLC | All Rights Reserved Nothing published by Monument Traders Alliance should be considered personalized investment advice. 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