## Only \$65 to Buy These Calls After A Recent Chart Breakout!

What’s goin’ on everybody?

Trust me when I tell you that each and every one of you are good at something, whether you know it or not.

I don’t care what that strength is, if you learn to tap into it I am sure we can both figure out how you can use it to become a better trader.

While I was still away yesterday, my right-hand man Ethan Harms took over for me.

Do you know what one of Ethan’s strengths is?

Among many other things, Ethan is a Chart Monster when it comes to finding great trade ideas.

And one of the chart setups he gave to members on Monday set the stage for a nice ”lotto” trade that required a less than \$100 investment and still offers the potential for large gains. Of course, trading options is risky, and can result in the loss of investment.

Unfortunately, my kids like to use me for my physical strengths

Like this weekend, when I took them to Orlando and all they wanted me to do was use my height to leverage my way into winning them prizes while playing the “King Hammer” game.

Friends, I am constantly trying to tell you that trading options, particularly the kind of “lotto” options trades that I focus on finding for my Dollar Ace and LottoX members.

At the most basic level, here’s the math behind the huge leverage you get from using options.

Here’s a hypothetical example:

Let’s say you only have \$500 in your account. Well, you could only afford to buy 50 shares of a stock trading at \$10 per share. If the stock gained 25% and climbed to \$12.50, only \$125 in profit.

If, however, you chose to purchase 5 call options for the same stock with a \$10 strike at a price of \$1.00 per contract, you would then control 500 shares of stock (each call option controls 100 shares of stock).

Therefore, the same 25% gain in the stock would now equal a 150% gain. By using the power of leverage, a \$125 stock trade profit becomes a \$750 options trade profit.

\$0.65 ZIP Calls Offer Big Upside Potential Right Now

On Monday Ethan introduced a trade idea in ZIP (ZIPRecruiter Inc.), the online employment marketplace, to my Dollar Ace members for a reason that suits his strengths PERFECTLY.

Specifically, Ethan has found a BEAUTIFUL chart to work with.

The chart below shows ZIP starting to transition above a 4-month downtrend after recently forming a “triple bottom.”

In addition, the all-important RSI indicator recently broke higher into bullish territory after trading in a bearish regime since late 2021.

Finally, Ethan noticed that the daily chart is now squeezing higher.

Now, one of the keys to being a good options trader is being able to understand how long it might take for price to do what it is you want it to do.

Remember, one of the enemies of a call buyer is time decay.

Therefore, when Ethan looks at the fact that ZIP is still in the process of bottoming and trying to transition into a new uptrend, he feels it could take a couple more months to get up to the \$30 area.

The beauty of this idea, however, is that ZIP’s implied volatility is still low enough that Ethan was still able to use my Dollar Ace scanner to find 30 strike options expiring all the way out in July for just \$0.65.

Let’s have a great rest of the week and until next time…

Author:
Ben Sturgill