Kyle Dennis:How I Raked In $26K On LK and SBUX

The coronavirus has triggered the fastest market correction from a record high in history… and many market participants are having a hard time surviving amidst this bloodbath. Global stocks have lost a whopping $6 trillion in value as the coronavirus continues to spread…

And it’s become increasingly difficult to find plays out there for some. Today, I want to show you how you can position yourself for profits, despite the overwhelming pressure on stocks.

Of course, if you’re already in positions, I think it would be helpful to plan accordingly and have stop-losses in place… at least that’s what I would do.

For the most part, it’s a traders’ market… so I’m on the hunt for alpha and returns – so far, it’s been working out extremely well for me. Since I’ve got back in the saddle after the RagingBull Traders Summit, I was able to spot 2 massive winners in two coffee stocks.

How did I do it?

Catalyst Trades Are Rocking In This Environment

Of course, there’s a lot of risk on the table… and I’ve found that many stocks are not respecting their key levels. So instead of solely focusing on chart patterns, I find event-driven trading is far superior to generate alpha right now.

When it comes to hunting down explosive opportunities, I turn to the options market, as well as news catalysts. I want to show you how it all works with two winners that I found in two coffee stocks.

The first trade I noticed was in Starbucks (SBUX).

The stock got destroyed after coronavirus fears grew… and broke below a key support level in violent fashion. Typically, when I see such violent moves, it’s a signal that the weak hands are being shaken out… and it’s time to go on the hunt and look for catalysts.

Well, on Thursday — SBUX announced it reopened about 85% of their stores in China… and all the news outlets were loving the story.

So what did I do?

I turned to the options market because that’s where I can find some of the best risk-reward opportunities.

Since this was a high-conviction setup, I wasn’t afraid to sweep some options… and I figured I could lock in a 100 – 200% winner real quick.

Guess what?

In less than 2 hours… those options exploded, and I locked in a 100% winner — that was good for a $14K winner!

And many of my clients were able to take part in the action as well

The thing is… that wasn’t the only triple-digit winner I spotted amidst the market correction. There was another coffee stock in play with multiple catalysts on the table.

The “Starbucks of China”, Luckin Coffee (LK) was my next play. It was the same idea, there was news in the stock and it could cause LK to pop. Remember, in this environment, I’m not really looking for swing trades… just short-term trades.

So LK could’ve got pulled higher from the market forces… after all, the buy the dippers were probably waiting to pile in. However, there was a company specific catalyst on the table as well.

You see, LK was being added to the MSCI Index yesterday. In other words, funds would be purchasing shares of LK to take into account those changes… it’s what’s known as the “rebalance”.

Typically, on the day this happens, traders who catch wind of this news pile into the stock in anticipation of demand picking up. That’s exactly what I expected in LK. However, rather than buying shares… I looked to the options.

I figured if my thesis was right, those call options could move 100 – 200% (pretty similar to the SBUX trade from the other day).

Guess what happened?

LK made the move and those options exploded!

On just those 2 trades, I was able to lock in $26K! Now, if you’re struggling to find explosive opportunities in the market right now… don’t beat yourself up. Take some time out of your busy schedule and check out my shocking new eBook  Dollar Option Trader.

In it, you’ll find everything you need to know about my strategy

and how I’m able to consistently spot massive winners in the market.

[Ed.note: Kyle Dennis runs BiotechBreakouts.com. He is an event-based trader, who prefers low-priced and small-cap biotech stocks.

To learn more HUNT DOWN $1 OPTION CONTRACTS POISED FOR HUGE GAINS and download his FREE “DOLLAR OPTION TRADER” Playbook here!

Source: Biotechbreakouts.com | Original Link

Kyle Dennis Review: How To Prepare For A Market Selloff

Market is been out of control this morning as coronavirus fears continue to rise.

You’re probably wondering, “Kyle, how do I position myself for a market selloff?”

The thing is… when the market is as crazy as this, it’s not the time to pile into stocks and options. Rather, it’s when you should remain patient and wait until the markets calm down before making a move.

So how do you brace yourself and still find money-making opportunities when stocks are getting destroyed?

Simple… come up with a detailed watchlist and plan accordingly.

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How To Create A Bulletproof Watchlist For This Environment

If you look at any stocks making a move, on any given day, you’ll probably realize there’s a catalyst that sparked it… whether the stock is selling off or running higher.

For example, with stocks selling off today due to concerns of the coronavirus spreading into various countries… gold stocks are popping. Why? Well, there’s a catalyst on the table… and traders are looking for ways to protect their portfolios right now.

So what exactly are catalysts?

They’re the fundamental reason why prices move. They could be earnings, news releases, data releases or product announcements.

The best traders are forward-looking and understand how catalysts work… and I want to show you exactly how to use them to your advantage. For the most part, all of my winning trades have catalysts… and I’ll do is time them to perfection.

However, spotting the catalyst and placing your trade isn’t the only thing you need to do in order to hunt down explosive opportunities in the market. In fact, I have a simple ruleset:

  • Eliminate emotions from trading
  • Silence the noise and trust the process
  • Develop a trading plan (this helps with staying in between your guidelines, and removes emotion and noise)
  • Time your entry and exit by identifying catalysts

Especially in this market environment, I find following a rules-based strategy can allow you to prepare yourself and hunt down money-making opportunities.

Let me show you how it all works.

Remember the insane move Beyond Meat (BYND) had?

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The stock skyrocketed from $78 to over $130 in just a few short weeks!

If you go back and review that move… you’ll figure out BYND had multiple catalysts on the table, and all you had to do was time your entry around the catalysts.

You see, McDonald’s announced it was testing its Beyond Meat burger at locations in Canada. This news was announced a few months prior… and the test started a few months ago and ended in early January.

If you know anything about Beyond Meat, so many people love their vegan patties… and it was likely the tests went well and McDonald’s would expand its relationship with the company. Not only that, but BYND had an upcoming earnings release and call on Feb. 27, 2020.

Here’s what happened…

After the initial tests, McDonald’s announced it would test its Beyond Meat burger at more stores.

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What do you think traders had on their minds with an upcoming earnings announcement?

Well, McDonald’s was expanding its Beyond Meat burger, and that would mean more revenues and earnings for the fake meat company… so instead of waiting more than a month for the catalyst to happen, forward-looking traders hopped into the name.

They probably thought, “I gotta get into this stock before the move happens.

Well, if you know the story beforehand… the trade becomes extraordinarily easy… and you could have taken part in this move.

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It’s really not rocket science… and I actually traded BYND options and took part in this move.

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Not only that, but my clients crushed the trade!

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If you think about it, all you really have to do is find a catalyst, plan accordingly, and put it on a watchlist. Thereafter, you could put it on your watchlist and execute whenever you see fit. It’s a wacky market for sure, but I am confident my strategy could uncover explosive opportunities in the market very soon.