America's Options Trader
Senior Managing Editor’s Note: Today, we’re bringing you a guest essay from Freeport Society friend Tom Gentile. Tom is widely known as “America’s Pattern Trader.” He’s made millions of dollars over his career as a trader and trading educator, despite coming from humble beginnings in a small steel town just outside Pittsburgh. His secret to success isn’t a secret at all. He’s driven by that red-blooded American spirit that made this country the greatest economic power ever. And he was born with an uncanny ability to spot patterns in everything around him. Enjoy.
- Teresa B.
Right now, the AI boom is pushing the S&P 500 to its latest all-time highs. But I believe we’re about to enter the “Final Phase.”
Here’s how it’s going to play out…
Over the next few weeks and months, AI stocks are going to continue accelerating. Investors will be lining up to buy shares, pushing prices higher and higher…
Until the whole thing collapses.
This outcome is predetermined. It’s happened countless times over the last 400 years, from Dutch tulips in the 1600s to the mid-2000s U.S. housing market.
It’s the classic boom-and-bust cycle. And it’s coming for your AI stocks.
But today, I’m going to give you my full plan to profit from the Final Phase – including how you can 10X your profit potential and cut your risk to just $500 on every trade you make.
Let’s get to it.
How the Money Calendar Lowers Your Risk
It’s all thanks to a trading program I created called the Money Calendar.
It tracks an invisible pattern that occurs in the market’s best 370 stocks. I call them Profit Cycles – short windows of around 35 days or less when certain stocks move up or down.
These patterns have at least a 90% historical success rate – meaning the stock has made a profitable move during that window in nine of the last 10 years.
For example, the Money Calendar spotted a pattern on Nvidia (NVDA) earlier this year. According to the data, NVDA was scheduled to go up between January 11 and February 18. He’s the 10-year performance for those dates:
For nine of the last 10 years, NVDA made a profitable move. Based on these results, all you have to do is buy when the pattern starts and sell when the pattern ends.
And you can do really well on the market’s hottest AI stocks trading that way.
That NVDA pattern resulted in 32% gains in the stock in just over 30 days.
Over the last 10 years, NVDA’s average annual growth is 32% – meaning the Money Calendar delivered a year’s worth of NVDA stock profits in about a month.
That’s a great gain, but there’s one problem: There’s still too much risk.
Now, trading Money Calendar patterns already cuts your risk. Because you’re not buying and holding shares for the long term, your capital won’t be subject to the whims of the market for very long.
And it won’t be exposed when AI busts.
But the real risk here is the cost. Buying 100 shares of NVDA stock when the Money Calendar pattern began on January 11 would have cost you more than $54,800.
Most investors can’t afford that without risking a massive chunk of their overall capital, something I do not recommend.
So how do you bring down your overall cost to trade these 30-day patterns?
That’s easy: Options.
Three Reasons to Trade Options
Options are the perfect way to trade Money Calendar patterns, for three reasons.
1. Lower Risk
Options allow you to control 100 shares of stock for a limited time. And the expiration date means you’ll pay far less to “rent” those shares than you would to own them.
Remember, to buy 100 shares of NVDA to trade that January 11 Money Calendar pattern, it would have cost you more than $54,000.
The option trade, on the other hand…
Well, the way I trade, it would have cost you $500 or less in risk.
So, would you rather risk $54,000 to make 30%… or risk $500 to make 100%?
That should be an easy question to answer.
The risk/reward setup in the option trade is much more favorable.
If the market crashes tomorrow, the option trader is out $500 and gets to move on to the next opportunity. The investor with $54,000 tied up in NVDA is going to lose a whole lot more than $500.
2. Higher Returns
Options are leveraged, so a small move in the price of the underlying stock produces a much bigger return in the option.
For many of my Money Calendar trades, a tiny 2%-3% move in our direction is all it takes to double the value of our option trade.
And over the years, I’ve given my subscribers the chance to double their money 182 times on these lucrative, invisible patterns I discovered.
I’m talking about gains like…
- 219% in just 10 days on Alphabet Inc. (GOOGL)…
- 270% in three weeks on Amazon.com Inc. (AMZN)…
- And a whopping 384% in three weeks on AI chipmaker Advanced Micro Devices (AMD).
So instead of making quick double-digit gains just buying the stock, you can boost your profit potential by 10X using options.
All courtesy of the Money Calendar.
3. More Flexibility
With call options, we can play bullish trends and profit from stocks going up.
When the Money Calendar looks like this:
You’ll see mostly bullish call trades.
I like to let the tailwind of a strong overall market help my chances. So I prefer to trade with the markets. In fact, when stocks are strong, I’ll often look closely to see if a stock is correlating with the S&P 500 before I place a trade.
The stronger the correlation, the more likely a trade will receive a boost from the strength of the broader market trend.
Now, if the Money Calendar looks like this:
I’ll recommend put options to play bearish trends and profit from stocks on the way down.
So no matter what market trends the Money Calendar shows, we have a plan to profit.
There’s one more strategy I use to trade these Money Calendar patterns. It’s a special type of trade that allows me to lower my risk even further – without sacrificing any upside.
So, can you use this Money Calendar to trade AI’s Final Phase?
Money Calendar Is the Perfect Tool for AI’s Final Phase
The Money Calendar alerts me to what’s ahead and gives my readers a chance to profit quickly and safely through options.
This is how I’m trading the Final Phase of the AI boom – and getting out before the bust.
Last Wednesday, I held a special event that detailed everything you need to know about the Final Phase… including the name of one stock the Money Calendar has marked as an immediate trade target.
I gave a small group of my followers my exact profit plan for the Final Phase, including…
- How the “Final Phase” of the AI boom will play out (hint: it’s not like most people expect).
- Why most investors could walk away from the AI boom empty handed.
- How my Money Calendar finds the best time to buy and sell the market’s best AI stocks.
- How my strategy will help boost your stock profits 10X and cut your risk to $500 or less per trade.
- My top 10 AI stocks for this last phase of the boom
This presentation is still available to watch, and you can do so here, completely free of charge. But don’t wait too long because we’ll be taking it offline soon.
Good trading.