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There’s a major catalyst on the table this week, and it may shake up some sectors.

No doubt about it, there will be plenty of traders with eyes on the Pfizer-BioNTech advisory committee meeting on Dec. 10.

When there’s a catalyst of this nature, I don’t stay on the sidelines… I actually turn to my “insider” activity scanner to try to uncover smart money plays.

You see, these Wall street whales are throwing down some pretty sizable bets…

And my thought process is that chances are no one is placing trades of this magnitude if they’re not well-informed.

I’m sure you can probably guess how much easier it is to take the smart money’s trade ideas and make them your own, than trying to find plays on your own.

That said, let me show you two names that saw unusual options activity last week.

Does The Smart Money Know Something About MNSO & PVAC

Last week, I saw the smart money pile into two stocks, and I want to tell you a little bit about them.

Miniso Group (MNSO) is a Chinese company that sells low-cost consumer products (toys, perfumes, home decor, etc.). The company has over 4,200 stores, as well as online sales channels.

Why am I talking about it with you right now?

Because right before the closing bell on Friday, someone came in and bought a BOATLOAD of calls.

At around 3:46 PM ET, a trader came in and bought 400 MNSO Dec $25 Calls.

They paid $1 per contract and spent a total of $40K in premium.

Why does this stand out?

Right before the trade, the spread on the contracts was $0.25 by $1.00.

Generally, if you are an institutional trader and want to slap some size on a trade, you’ll contact a broker to “work the order” for you.

However, in this case, the trader wasn’t concerned about getting a better price…they just wanted their hands on these calls.

That’s what I call an aggressive buy.

And you know what else?

At the time of the trade, shares were trading at $21.91.

In other words, this trader needs to see the stock rise to $26 in less than two weeks, just to BREAK-EVEN.

Shares of the stock closed up 10% yesterday, at $21.96.

And with just 13 days until these options expire, you’ll want to keep this symbol on your radar.

The second smart money trade that stood out was in Penn Virginia Corporate (PVAC).

Penn Virginia Corporation (PVAC) is an independent oil and gas company located in Texas.

It grabbed headlines last month when Juniper Capital made a strategic investment of $188.4M, in an attempt to improve its balance sheet and liquidity position.

PVAC is set to report earnings on February 25th, but one options player believes shares could explode higher before then.

At 3:56 PM ET on Friday, a trader purchased 1000 PVAC Jan21 $12.5 Calls.

They spent $0.70 per contract, which came out to $70K in premium.

Now, PVAC closed at $9.75 on Friday.

That means this trader needs to see the stock rise by 35% just to break-even.

In other words, they are expecting a significantly higher move between now and the next 1.5 months.

And while a $70K bet isn’t something to sneeze at, I’ll be paying attention to see if there is more action coming this way.

Now, I see bets like that come across my screen almost every single day. If you want to learn how to follow the smart money’s moves…

And take their trade ideas and make them your own, then I urge you to attend this important training session.

You’ll learn a unique strategy to attack the market, and how to put yourself in a position to trade “alongside” the smart money.

Author:Kyle Dennis

Straight outta college Kyle Dennis taught himself to trade, and then made over $7 million in trading profits by the time he was 28 years old. Kyle reveals how to find, track, and profit from lucrative trades for exceptional profits. Thousands of traders follow him every day to learn how to target these high probability trades.

The Eight Best Ways To Invest $5,000

Can $5,000 change your life? That all depends on how you use it. For example, investing $5,000 in stocks can potentially jump-start your future wealth. With the ideas on this list and a lot of patience, you can be well on your way to success.

Key Points

  • Bulk up Your Retirement Savings: Taking part in a company 401(k) is often the first step for new investors.
  • Use a Roboadvisor: These automated platforms require little trading knowledge and offer low fees and minimums.
  • Purchase Dividend Stock: Shares that pay dividends are a smart choice for investors who want to create multiple streams of income.
  • Invest in Real Estate: You don’t need a 20% down payment to reap the benefits of the real estate market.
  • Open a 529 Plan: If you have children, this tax-advantaged investment will put you on the path to college savings.
  • Consider ETFs: Exchange-traded funds allow you to invest in some of the biggest global firms without the vast capital needed to purchase individual shares in industry giants.
  • Purchase Mutual Funds: These investments make sense for younger investors who can wait out the associated risk.
  • Buy a Certificate of Deposit: Try this strategy when you need your return in five years or less.

Smart Ways To Start Investing With $5,000

Many new investors hesitate because they aren’t sure where to put their money, or they worry about risk. If you’re wondering how to invest $5,000, begin your journey with these eight possibilities as you consider your investment goals, risk tolerance, and overall financial picture.

Bulk Up Your Retirement Savings

If you don’t contribute enough to your employer retirement fund to receive the company match, that’s the natural place to start investing. Spread out the $5,000 over 12 months for a new or additional 401(k) contribution of just over $400. Set up a payroll deduction for that amount and repay yourself from the original $5,000 each month.

Often, your company will agree to match up to 6% or even more of contributions through payroll deduction. A 6% match on your $5,000 contribution means you’re actually investing $5,300 for your future.

If you already max out your employer retirement account or don’t have a job with a 401(k), put the $5,000 in a Roth IRA. You pay taxes on this amount when you create the account, so you can withdraw the money and the interest tax-free upon retirement. In 2020, taxpayers can put up to $6,000 a year in an IRA, or $7,000 for individuals ages 50 and older to help them catch up and build savings in time for their retirements.

Not sure how much to save for retirement? Experts recommend putting away about 30% of your income annually. In 2020, you can put up to $19,500 in your 401(k), a limit that the IRS adjusts each year.

Use a Roboadvisor

After reaching your annual tax-advantaged retirement savings threshold, think about investing in the stock market. You don’t necessarily need advanced financial knowledge or hours to track and analyze stocks to make money from your investments. With a roboadvisor app or online service, you enter information about your age, financial goals, and investment preferences. Based on these details, the software algorithm creates a customized investment portfolio with your initial deposit.

You can often set up regular contributions to take a set-it-and-forget-it approach to investing. Not only is an account with an automated trading platform one of the best ways to invest 5k, but you usually only need a few dollars to get started. Generally, management fees for roboadvising accounts total no more than 0.35% of your annual balance, much lower than the average fee for a traditional broker account.

Purchase Dividend Stock

If you invest in the right companies, this strategy can provide both the long-term benefits of compound interest and a current stream of passive income. Look for a company with a long history of regular dividend payments that have increased over time. You should also seek established dividend stocks that regularly perform better than the S&P 500 index.

Invest In Real Estate

If you think $5,000 isn’t enough to start your real estate portfolio, think again. With this amount, you can buy shares in a real estate investment trust (REIT). This type of company owns properties that create a stream of passive income. Under federal law, REIT investors must receive collective annual dividends of at least 90% of the company’s income. Some REITs trade on open markets, but these tend to have higher fees than those that do not.

You can also invest in private real estate deals through specialized crowdfunding platforms. Many of these platforms have minimum investments starting at $5,000 for investors without real estate accreditation.

Open a 529 Plan

Image via Flickr by Kars4Kids

When considering where to invest $5,000, look into the 529 plan requirements in your state. Many states offer tax benefits for contributions to this type of account, which you can use for your child’s college education. The money will grow tax-free until they withdraw it for a qualified purpose. Before going this route, experts recommend fully funding your retirement. Student loans are an option, but you can’t borrow money for retirement.

Consider ETFs

Exchange-traded funds (ETFs) provide an alternative to directly purchasing shares of stock. Instead, an ETF groups a diverse selection of stocks, bonds, equities, and other financial assets. Many ETFs are designed to reflect companies that appear in the S&P 500 or other major indexes and track the performance of these indexes. As a result, you can use your $5,000 to invest in major firms whose shares you couldn’t otherwise afford.

Because ETFs are inherently diverse, you also take on less risk than you would by purchasing individual stocks. In addition to ETFs that mirror stock market indexes, some track specific markets or financial sectors. Look for commission-free ETFs to avoid potentially high fees of about $10 per transaction.

If you have an IRA account, you can use it to purchase ETFs. You can also go to any brokerage firm to learn more about this best way to invest $5,000.

Purchase Mutual Funds

Although mutual funds have a risky reputation, they rank as one of the best investments with 5k for younger investors who are willing to wait it out. The beauty of mutual funds is that with so many different types of funds, including but not limited to target date, emerging market, international, domestic, bond, and equity funds, you can build a diverse portfolio targeted to your specific financial goals.

Choose an actively managed mutual fund if you want an advisor to make trading decisions on your behalf. However, check the quarterly performance reports you receive to look for red flags. If you have the knowledge or the time to learn, you can manage your own mutual fund investments to avoid active management fees. Look for funds with a lower than 1% expense ratio.

Buy a Certificate of Deposit

If you expect to need access to your money within five years, purchase a certificate of deposit (CD) with a five-year maturity date. This type of investment allows you to earn a higher interest rate than you would within a standard savings account, but does not carry the risk associated with short-term stock market investments. Keep in mind, however, that you cannot withdraw your funds from a CD until it matures. You can increase liquidity by choosing a money market or similar high-yield savings account.

Whichever one of these investment strategies you choose, it can help you turn that $5,000 into a much larger sum if you have the patience to wait out the ups and downs of the market.

Author:Kyle Dennis

Straight outta college Kyle Dennis taught himself to trade, and then made over $7 million in trading profits by the time he was 28 years old. Kyle reveals how to find, track, and profit from lucrative trades for exceptional profits. Thousands of traders follow him every day to learn how to target these high probability trades.

 

Nikola Corp. (NKLA) has been getting beaten down after a slew of negative catalysts hit the wire…

Now, the smart money was actually all over this trade before news got out that GM was pumping the brakes on its deal with the hydrogen-EV company.

Not to mention, they also caught the drop on Tuesday, after the lockup period expired.

Was this a well-timed trade, or did someone know ahead of time?

To be honest with you, it doesn’t really matter — what matters most is whether you can identify the play or not.

Did The Smart Money Know About This Drop In NKLA?

Here’s what came across my scanner on Friday…

1000 NKLA December 18 $18 Puts for .95

Someone bought 1,000 puts in NKLA puts with a strike price of $18, when the stock was trading above $25.

Now, it was known there was a lockup period for this stock on Tuesday. What that meant early investors would be able to sell shares. Of course, traders anticipated that news and bet against the stock.

Those who were short heading into this event (on Friday), actually got paid because there was news of how GM’s deal wouldn’t really add value to the company.

With the stock dropping from more than $30 to $17 in just a few sessions, I actually see that as a short-term trading opportunity.

You see, when traders see such a beaten down stock, the may see it as a value buy and if you can spot an upcoming catalyst — that might be a signal the stock can bounce.

Well, with NKLA, I actually purchased shares on Wednesday morning because there was another catalyst on the table.

Here’s what I sent out this morning…

The company has been hammered over the past 5 trading session from near $40 to $17 and today after the close they are supposed to have a little investor day. I’m thinking we get some short covering and a rally into that at least above $19 before today’s close. I’ll look to exit sometime today, ahead of the conference.

That catalyst actually helped me time my entry, and given the way the price action looks… I think NKLA might fill this gap. Whatever the case may be, I plan to exit ahead of the conference…

And I’ll be sure to let subscribers know about my moves.

Now, if you want to learn how to better time your entries and exits… let me show you how you can utilize catalysts to your advantage.

Given the state of the market, I think it’s of the utmost importance for you to attend this important session.

WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services. However, Ragingbull.com, LLC, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication.

 

Author:Kyle Dennis

Straight outta college Kyle Dennis taught himself to trade, and then made over $7 million in trading profits by the time he was 28 years old. Kyle reveals how to find, track, and profit from lucrative trades for exceptional profits. Thousands of traders follow him every day to learn how to target these high probability trades.