No doubt about it, there are plenty of catalysts on the table right now. Here are just some of the catalysts I’ve seen that can potentially move the markets:
For many traders, they get shook and scared by all this uncertainty — and many might look to lighten up into these catalysts… and that makes a lot of sense.
However, what happens when these catalysts become “long-term”… or what if you uncover a stock with a “long-term” catalyst on the table?
For me personally, I actually utilize a strategy to take advantage of “long-term” catalysts with minimal time. In other words, I identify a potential event that can cause a stock to explode higher in a few months.
I know what you’re wondering… Kyle, how exactly does that strategy work?
Allow me to show you…
When it comes to “long-term” catalysts, what I’m looking for is a factor that can move a stock. For example, one of my hottest catalyst plays of the year was in Opko Health (OPK). Here’s what I sent out about OPK to Sniper Report subscribers back in June.
There were multiple catalysts on the table for the company. At the time, it received a $100M contract for its testing. Not only that, but if you think about it… people need to get tested in order to stop the spread of the deadly virus.
Not only that, but the CEO and Chairman Phillip Frost continued to buy shares frequently at the time. For me, those were catalysts that would take some time to develop.
Just a few weeks later, the stock started to take off.
However, with these plays, I’m not really looking for a quick pop. With Sniper Report, it’s more of a buy-and-hold strategy for me. On July 20, I actually locked in a 90% return in just about six weeks on half of my position.*
The following month, on Aug. 20, I locked in OPK for about 100%.
Of course, there are plenty of catalyst trading opportunities out there that don’t require me to do a whole lot of work after I get in. If you want to discover how I’m able to “set it and forget it” and take advantage of all of the catalyst trading opportunities out there… then you’ll have to join Sniper Report at this exclusive pricing.
There’s one trading style that’s worked extremely well for me this year — catalyst trading, the pros call this event-driven trading.
Today, I want to show you what catalyst trading is all about, and how it’s helped me generate more than $4M in trading gains thus far in 2020.*
The best way I know how is to provide you with some of my best trade ideas, along with my trade plans.
Normally, event-driven trading has been reserved for hedge fund managers and the pros. However, since there’s so much free information out there, it’s become easier to uncover these event-driven trade ideas in my opinion.
So what’s a catalyst or event?
Well, there are multiple factors that can cause a stock to move significantly:
Of course, these are just a few reasons a stock can move, but these are the major factors to focus on, in my opinion.
For example, it’s earnings season now and there’s going to be a lot of catalyst trading opportunities out there. For me personally, I want to play the run up into the event and get out before.
You see, there are three ways to play these events. Either, traders will play the event after the news is out, they can trade into the event (this is really risky in my opinion), or play for the catalyst run-up as I do.
For example, here are a few stocks on my radar that I sent to subscribers earlier this week.
Catalyst Dates: Earnings October 28 after market closes
Buy Zone: $141 to $142
Profit Zone: $145 or higher
Stop Zone: $140 or below
Options: ETSY October 30 $145 Calls
Catalyst Dates: Furniture Retailer, earnings November 3 before market opens
Buy Zone: $284.00 to $290
Profit Zone: $300 or higher
Stop Zone: $280.00 or below
Options: W October 30 $300 Calls
With these two specific setups, they’re actually catalyst run-up plays. You see, with these plays, if there’s strong sentiment… they’ll likely run-up into the earnings event.
The key is to develop a trade plan and execute it. For the most part, if I’m taking these plays and I always want to get out before the event.
*Results presented are not typical and may vary from person to person. Please see our Testimonials Disclaimer here: https://ragingbull.com/disclaimer
There’s one strategy that’s been working for me right now, and it just so happens to work well… in nearly any market environment.
You see, no matter what the overall market does, there are plenty of money-making opportunities out there for the taking. I’m sure you already know this by now, but timing is everything in this market environment.
I know what you’re probably wondering, “Kyle, I get it… but how do you actually time your trades to near perfection?”
For me, it’s pretty simple. It’s known as catalyst trading.
If you don’t know what that is at all, don’t worry. I’m going to show you how catalyst trading works and why I believe it’s the best strategy out there.
First thing’s first, you need to know what a catalyst is.
It’s simply any reason that can send a stock higher. It can be news, earnings, M&A activity, “insider” activity, a fundamental change in the company, activist investor, etc. Whatever the case may be, it’s an event that can propel a stock higher, or smack it down.
Riddle me this, if there’s a known event coming up, what do you think traders and investors are doing?
Don’t worry, there actually isn’t really a right answer. You see, it all depends on sentiment and how the event will be perceived by market participants. Typically, I’ve found stocks run up into the event, and that’s why I love to use the catalyst run-up strategy.
Take Apple Inc. (AAPL) for example. It had a product launch and leading up into the event (weeks before), the stock was running up into its product launch event. Apple was set to reveal some new products and updates, and overall, prior to the event, traders loved the stock.
If you just pull up to AAPL chart prior to Oct. 13, you’ll notice the stock was running up into the event.
That’s all that really matters, this runup for me. If I hold into a catalyst event, it’s really just a coin toss, they’re either going to surpass or miss market participants’ expectations.
If I can spot the catalyst, then I can time my entries. For example, Adamis Pharmaceuticals (ADMP) has an FDA Approval Date on Nov. 15. On Sep. 28, I actually spotted the catalyst, and sent this out to subscribers.
Adamis Pharmaceuticals (ADMP)
Catalyst Dates: FDA Approval Date of November 15
Buy Zone: $.65 to $.75
Profit Zone: $.90 or higher
Stop Zone: $.60 or below
Options: No Options
I let them know about my game plan, and after I sent out that watchlist… I took action. On Sep. 28 at 10:50 AM, I sent this out.
Now, the following week, ADMP actually provided me another opportunity to purchase more shares. On Oct. 6 at 9:40 AM ET, I let subscribers know I added 10K ADMP at $0.74, and owned 20K shares at an average price of $0.76.
I held onto the position because there was no reason to get out and there is still a catalyst date next month.
On Monday in the pre-market, I sent this out to subscribers…
That was good for a 40% return in just about two weeks.
That’s how the catalyst runup strategy works in action. It was very little work for me, I bought shares and just looked at the position from time to time, and bought more shares when another opportunity presented itself… then locked in gains.*
Of course, there are plenty of explosive catalyst trades out there and I want to show you how to find them. That’s why I’m extending this invite for you to attend this catalyst training workshop. It’s absolutely free, and you’ll discover how I time my trades to near perfection. Register for it here.