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Bullish Options Calls Coming Soon... *Poll*

Would you all like postings of Options calls?

  • Yes

  • No

  • Undecided


Results are only viewable after voting.

Alec M

Over the rainbow
Founding Member
am in the same court as ThaBizniss, I can't really get my head around options. Are we talking binary options ? Because I find this incredibly risky. But, if there is education that comes with it, I'd be happy to be enlightened.
 

Discovisi

Noble
V.I.P.
Yep, Crypto I could get in to because I'm a nerd, but other trading vehicles scared me off with lingo I just did not get or understand.
I STILL don't really know what "Options" means for me, and I've done the cursory Google search.
+1 Being new to investing, and having started with crypto in 2017, I don't understand any other trading vehicles or asset classes like options, bonds etc
 

Bogdan

Serf
Founding Member
Hi Barons. I have an active subscription for 2 options services. Options are very powerful financial products and are used since antiquity to hedge or speculate.
Please watch this video that explains options basics: https://opacity.io/share#handle=78b...9d2922ddde5b6ab2fbdb711db2a8b2fdb1e29dbd1ec09
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Regarding the services, they are both by James Altucher partnering with Agora.
Actually James does mostly the marketing, I think he's little involved in picking the calls.
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First service is called Secret Income and the trades are mostly for selling OTM Puts
Stock S = $100. OTM put means selling an option for a price below the current price, let's say $80 with a specific expiration date (e.g. one month away).
Let's say the price for such an options is $2. I get $200 (1 option contract always refer to a number of 100 stocks)
By selling this I oblige myself to buy the 100 stocks at the expiry date at the strike price of $80.

It' like the seller buys a kind of insurance and I take on the risk of the stock going lower for a fee.
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This service performs well in Bull Markets. I used to selectively trade the calls and got some mixed results that I was not happy with.
My problem was that my portfolio value was to low for many of the trades.
You have to have the budget to buy the stocks if they go below the strike price.
All the track record is here: https://opacity.io/share#handle=7e3...daa8b2ec1211a531ea1f5f92a54b2d57cbac220632e57
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2. The second service is called Altucher's Alpha Brain. The story is that they use AI. This is for buying calls.
When you buy a call, you buy the option to buy the underlying (stock in this case) for a strike price at a specific date.
It's a cheaper way to expose to the upside of a stock, having limited downside (what you pay for the option).
What is always good to keep in mind with options is when you buy you can only lose what you pay and you have asymmetric upside.
When you sell the profit is limited and downside could be huge.
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This program is also for bullish territory. I will post here the calls for both programs as I get them. I receive them via email.
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For example, this was the last one received.


June 15, 2020
New Trade Alert: Taking Our Income Approach to New Heights
James Altucher
Dear Bogdan,
When I started my fund of hedge funds shortly after the start of 2002, a good friend of mine convinced me I needed to fly to Minneapolis, Minnesota to interview some guys with a new fund.
I didn’t want to go.
It was the middle of winter, new restrictions on flying were hitting daily, and travel is never at the top of my list.
Worst of all, I couldn’t get a direct flight. My trip required a quick plane change in Chicago. I’m not sure if you’ve ever been through a Chicago airport, but the word “quick” is a misnomer.
Mission Critical:
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Finally, I caved and hopped on the flight early one morning.​
Of course, the stock market is going nuts around this time, but once we’re in the air, I’m blind.
Two-thirds of the way through the flight, the captain gets on the intercom and tells us high winds will result in a late arrival.
Once on the ground, I have to hustle to my gate. Me running isn’t a great sight. Me running through an airport is downright scary. I bet they still have suspicious activities reports on file.
Luckily, I make the flight only to get stranded on the tarmac for an hour waiting to take off.
The entire time, I’m missing out on stock market moves and the guys I’m supposed to meet that afternoon have no idea I’m going to be hours late.
Ah, the good old days when we lacked reliable smartphones and internet capabilities while in the air.
This ability to access the internet in the air is what draws us back to this week’s Secret Income name: Gogo (NASDAQ: GOGO).
Smarter Planes, Better Airlines, Happier Passengers
The company believes in the mantra: where planes fly smarter, airlines perform better, and passengers travel happier.
The company provides in-flight broadband connectivity and wireless entertainment services to the aviation industry.
Now, Gogo took a hit last week when the company agreed to amend its current contract with Delta.
The original agreement made Gogo the only in-flight Wi-Fi provider for Delta through 2027. Delta will now be able to consider alternative providers in a staggered fashion for its fleet.
On the surface, this sounds terrible. But the current contract wasn’t all that terrific for Gogo. While the other contract stated exclusivity, Delta could cancel it if an alternative offering emerged.
Also, this move likely signifies a move toward free Wi-Fi, which is a huge boost for Gogo’s potential. Rather than Gogo having to charge for its service and pay Delta to have that privilege, Delta would then be paying Gogo for connectivity and cover hardware installation costs in the plane.
There’s no guarantee Delta will move away from Gogo, especially if the company completes its new “2Ka” Wi-Fi offering to go along with its existing “2Ku” offering, the company’s satellite-based broadband solution.
In simple terms, Gogo 2Ku antennas are spectrally efficient. That means it can produce more bandwidth for less.
Speed and Capacity
In the end, the ability to maintain and earn future Delta business ― or any other carrier for that matter ― comes down to Gogo delivering a superior product.
And when we’re talking about broadband connectivity in aviation, we’re talking about speed and capacity.
It’s the reason Gogo began the year signing a deal with Spanish satellite operator, Hispasat. With a new satellite set to launch in the second half of 2022, Hispasat’s Amazonas Nexus HTS Satellite will help increase Gogo’s Ku-Band capacity over the Americas and the Atlantic region.
But Gogo isn’t stopping there. The world wants the advancements of tomorrow rather than the technology of today.
That is why the company announced it is moving forward with its air-to-ground network in North America highlighted by a 5G network for aviation.
This network will be designed for business aviation, regional jets, and small mainline jets operating in the US and Canada, shown below.
Map image

The best part is Gogo can use existing infrastructure consisting of more than 250 towers in combination with unlicensed spectrum in the 2.4 GHz (gigahertz) range.
Additionally, existing 3G and 4G networks will provide backup to the 5G network. Gogo’s partners ― Airspan, First RF, and Cisco ― are working with the company to offer a widespread deployment during 2021.
Highlights include:
  • Multi-carrier LTE signal that enables more bandwidth
  • Dedicated aviation frequency to reduce signal noise
  • Redundancy and resilient licensed spectrum capacity over urban areas for uninterrupted connectivity
  • Lower latency to replicate the in-home connectivity experience
A Quick Update on COVID’s Impact
Like many other companies, Gogo didn’t escape the impacts of COVID-19.
After a strong start to the year, business aviation came to a crashing halt in March and April.
The company reacted quickly to preserve cash by furloughing 60% of its workforce and reducing compensation for most of its remaining employees. That included a 30% cut for the CEO, 30% cuts for the board of directors, and 20% cuts for the executive leadership team.
This is significant compared to so many other companies out there today. That’s what I want to see from leadership.


Action to take:
Sell to open 30 GOGO (NASDAQ: GOGO) July 17, 2020, $2 puts at $0.30 or better.


If you need help placing an options trade, you can check out our step-by-step guide here.
At the time we sent the text message alert for this trade, the puts were trading at $0.35.
Our Double-Down Strategy Is On Hold
Often, we will use some of Wall Street’s cash to enhance our upside.
But in this particular instance, the income-only approach offers the best risk-reward scenario for us.
This week we are not doubling down by purchasing some call options. Instead, if you wanted to generate potentially greater returns on GOGO, I would suggest selling another 10 July 17, 2020, $2 put contracts. (Please note: Our official portfolio we'll be tracking an entry of 30 put contracts.)
Sincerely,
James Altucher

James Altucher
Editor, Altucher’s Secret Income
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And an Exit call. They made some profits :)
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Exit Alert: Capitalizing on Market Strength
James Altucher
Dear Bogdan,
I know this Friday is expiration day for several of our positions, but the market has extended so far, so fast, that we're left picking up nickels in front of a steamroller in a few cases.
Let's use this market strength to exit a few names early and take any overnight stress off our backs.​
Starbucks (NASDAQ: SBUX) is trading well above our short June 19, 2020, $72.50 put, but there's no sense waiting. Let's close this one for a gain.


Action to take:
Buy to close one Starbucks (NASDAQ: SBUX) June 19, 2020, $72.50 put at $0.30 or better.



At the time we sent the text message alert for this trade, the puts were trading at $0.25. Leaving us with $575 in gains.
Schrödinger (NASDAQ: SDGR) has been another strong name. Although our June 19, 2020, $55 puts are well out of the money, this stock has been prone to volatile swings as of late.


Action to take:
Buy to close two Schrödinger (NASDAQ: SDGR) June 19, 2020, $55 puts at $0.30 or better.



At the time we sent the text message alert for this trade, the puts were trading at $0.25. Leaving us with $830 in gains.
Lastly, let's drive away from our short June 19, 2020, $5.50 puts in NIO (NYSE: NIO).


Action to take:
Buy to close ten NIO (NYSE: NIO) June 19, 2020, $5.50 puts at $0.03 or better.


At the time we sent the text message alert for this trade, the puts were trading at $0.03. Leaving us with $360 in gains.
Combined, these three names netted us $1,765! Congrats!
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In this last email they put the wrong entry prices.
StarbucksSell June 2020 $72.50 puts1Bought back at $0.25SBUX200619P0007250004/13/2020$6.0006/16/2020$575
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SchrödingerSell June 2020 $55 puts2Bought back at $0.25SDGR200619P0005500005/18/2020$4.4006/16/2020$830

NIOSell June 2020 $5.50 puts10Bought back at $0.03NIO200619P0000550006/08/2020$0.3906/16/2020$360
 
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Bogdan

Serf
Founding Member
NEW ALPHA BRAIN CALL


New Trade Alert: COVID-19 Signals Down APT
James Altucher
Dear Bogdan,
The market gave investors a one-day dip last week and a slow start this week as the "opportunities" to buy for those who have missed out, run higher.
The strength has been amazing. Some are blaming the Federal Reserve (the Fed) for propping up the stock market any time it drops. The media is blaming Robinhood traders, the army of newly minted retail traders using the commission-free platform, as the reason stocks are rising. The White House is basically touting itself as the reason the market is so strong.
Mission Critical:
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As soon as I find a new trade or issue a sell alert, I send a text to my readers on this list. That’s the best way to ensure you can get in and out of these fast-moving trades in time. Click here to sign up.
Phone image
Honestly, it's probably a little bit of all of them, with a lot of something else we'll never know about.
That's why I always incorporate an algorithm in my trading. Logic can be a tough hill to climb. COVID-19 isn't behind us, although some folks are acting like it. COVID-19 probably isn't as bad as others want you to believe. Somewhere in between is the answer, but the stock market flying back to pre-COVID-19 highs so quickly will cause even the most seasoned pro to scratch their head and ask why?
Ironically, it's that potential of the second COVID-19 wave that may be the reason why Alpha Pro Tech (AMEX: APT) triggered at the top of AlphaBrain's list early this morning. The company makes N-95 masks as well as other PPE equipment. I won't conclude AlphaBrain is predicting a second wave, but I won't second guess buying some calls here either.
Here’s how I want you to take advantage of the opportunity APT…


Action to take:
Buy to open Alpha Pro Tech (AMEX: APT) July 17, 2020, $15.00 calls at $1.25 or better.



If you need help placing an options trade, you can check out our step–by–step guide here.
Then I want you to set up two sell orders…



Action to take:
1. Set a limit sell order on half of your position at 50% above your purchase price.
2. Set a limit sell order on half of your position at 125% above your purchase price.




If you opt only to buy a single contract, then simply use the first limit sell order only.
And if you decide to buy APT stock instead of call options, you can purchase shares for $13.15, but I don’t want you to pay more than $13.55. (You can also opt to buy the stock instead of options if pricing runs to high — that way you can still make a profit!)


Action to take:
Buy shares of APT below $13.55.

 

cryptomooniac

Serf
Founding Member
Saw the video you linked, liked it and actually left me wanting to learn more about the strategy ;)

Thank you very much for sharing the calls here. Sounds really interesting.

For this I need to open a brokerage account in the US right? Any suggestions that would admit non-US investors and could be affordable?
 
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Bogdan

Serf
Founding Member
Quick win for last call

June 17, 2020


Ringing the 50% Gains Bell Before Lunchtime!


James Altucher
Dear Bogdan,


Another quick win for AlphaBrain this morning as Alpha Pro Tech (AMEX: APT) shares hit our 50% target before lunchtime — trading at $1.90!


Technically, that's 52%, but the options trade in nickel increments only, so $1.875 wasn't a possibility for most.


Congratulations on a quick win! Please let me know how you fared on this trade by clicking here.
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Saw the video you linked, liked it and actually left me wanting to learn more about the strategy ;)

Thank you very much for sharing the calls here. Sounds really interesting.

For this I need to open a brokerage account in the US right? Any suggestions that would admit non-US investors and could be affordable?
Interactive Brokers or Tradestation Global
 
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Bogdan

Serf
Founding Member

New Trade Alert: A Power Play on Electric Vehicles
James Altucher
Dear Bogdan,
Growing up, I must have heard the phrase “if it ain’t broke, don’t fix it” a million times. The best part about the phrase is it never breaks, so we can continue to use it.
Mission Critical:
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As soon as I find a new trade, I send a text to my readers on this list. That’s the best way to ensure you can get in and out of these fast-moving trades in time. Click here to sign up.

Phone image
And there’s wisdom in the phrase, a commonality we can use on the investing and income side of the ledger: Themes.
Thematic investing has worked well for us. Themes represent trends, and trend following is the epitome of the phrase “if it ain’t broke, don’t fix it.”
That concept brings us to today’s Secret Income name: Workhorse (NASDAQ: WKHS).
The EV Trend is Full Speed Ahead
Workhorse is a player in the electric vehicle (EV) space, a segment of the market garnering more and more attention and premium valuations.
The EV market is highly competitive, but Workhorse has found itself a niche in last-mile delivery. (Last mile refers to getting the shipment from a local or regional warehouse to its final destination.)
Usually, we think “small” when we hear the word “niche”, but we’re talking about an $18 billion niche market in the last-mile delivery game.
Strategic Moves in the Carpool Lane
Workhorse offers fully electric and ISO-certified delivery vehicles. Perhaps more impressive is the Workhorse C-1000 electric work van that was jointly developed with UPS.
Now, the C-1000 isn’t the company’s first delivery electronic vehicle.
Workhorse began with two E-generation vehicles in 2015. A few months later, that increased to 18. One year later, that number jumped to 125. The numbers grew through 2018 so much so that UPS reached the point of opting to develop a new and improved vehicle, the C-1000.
That joint-developed project includes a 1,000 vehicle order from UPS. Remember, UPS has already put 5 million miles on the road with 345 first generation Workhorse vehicles.
There’s appeal in the new Workhorse product offering.
Fuel efficiency on the new C-Series is estimated at 40 MPG versus 6 MPG for UPS’s more traditional vehicles. Operating costs should drop from $1.00 per mile to $0.36 per mile. Maintenance costs should decline as well.
It’s both green and cost effective. A friend to the environment as well as the cash flow statement.
shiping trucks
And UPS isn’t the only big-name client.
The United States Postal Service recently completed a vehicle durability and field test of six purpose-built all-electric and range-extended low-floor prototypes. This is a $6.3 billion, 165,000 vehicle opportunity for Workhorse.
Workhorse has also partnered with Lordstown Motors to make a move in the retail EV pickup truck market. The company granted Lordstown Motors a license to the technology and design of the Workhorse W-15 pickup truck.
It has a 6.2 million square foot manufacturing facility obtained from General Motors and will be the sole manufacturer of the vehicle. For its part, Workhorse receives a royalty fee for each electric pickup delivery by Lordstown and holds a 10% equity stake that can’t be diluted for the first two years.
Soaring to New Heights
Workhorse’s products range from small delivery vans like you see Amazon and Walmart using, to larger cargo trucks used by UPS, FedEx, and DHL. Along with the USPS, this is Workhorse’s target market ― totaling around $18 billion and increasing daily as online shopping grows in popularity.
But the potential for the company doesn’t end with last-mile delivery vehicles.
Workhorse has developed a delivery drone called HorseFly. Not only can every retail and delivery company use this technology, but it may also be exactly what the doctor ordered… literally.
The company is working with the Virginia Center for Innovative Technology (CIT), UPS, and DroneUp to support coronavirus responses amid social distancing protocols.
The project aims to create delivery programs of medical products offering a safer and faster approach than conventional ground-based delivery. This includes low-touch options for lab specimens as well.
As we’re seeing a resurgence in COVID-19 cases, expect a stronger push for implementation of this kind of technology.
Drone costs could significantly decrease last-mile delivery costs as well ― even more than EVs. The price per package drops to around $0.03 per mile versus $1.00 per mile for a gas vehicle. HorseFly is already FAA compliant, and Workhorse holds a patent covering any drone utilization integrated with delivery vehicles.
Additionally, the company has a cloud-based software component named Metron as part of its platform. The database-driven performance monitoring system provides clients access to real-time data to monitor and measure performance. This should allow fleet operators to generate optimal energy and route efficiency.
The opportunities here are strong enough to put our income generating approach to work.


Action to take:
Sell to open 15 Workhorse (NASDAQ: WKHS) July 17, 2020, $5 puts at $1.05 or better.



If you need help placing an options trade, you can check out our step-by-step guide here.
At the time we sent the text message alert for this trade, the puts were trading at $1.05.
Important Trade Update
The price of WKHS moved quickly this morning.
If you weren't able to sell the July contracts as we wanted, then use the August contracts as an alternative.


Action to take:
Sell to open 15 Workhorse (NASDAQ: WKHS) August 21, 2020, $5 puts at $1.45 or better.



Again, this is only if you were unable to sell any July contracts.
Playing the Upside
For those folks seeking further upside potential, we can put a portion of that cash to work right away.
The next step is to use some of that income to buy call options on the same stock. By doing so, our potential profits are now limitless.
Here’s how you can participate:

Action to take:
Buy to open five Workhorse (NASDAQ: WKHS) August 21, 2020, $7.50 calls at $1.40 or better.
 

Jan

Neophyte
Founding Member
Thx for the article. Very good trades last week. Unfortunately I saw the article too late....and so I missed the trade!
 

Bogdan

Serf
Founding Member
Friends, I have a proposal (I hope the Lord Baron gives us his blessing for this). My schedule is to chaotic, being a father of 2 kids (a 2 year old and a 5 year old) for me to promptly post these calls as I receive them. Is anyone willing to post them for our wonderful team here? I could make an automatic forward to his/hers email address.
 
  • Splendid
Reactions: Jan

Bogdan

Serf
Founding Member

July 6, 2020

New Trade Alert: The Race to Plant-Based Profits

James Altucher
Dear Bogdan,

If you’ve been with Secret Income for at least a few months, you already know I like themes.

And if you’re new to Secret Income, welcome! Also, you should note, I like themes.

My friend Jim Cramer likes to say, “there’s a bull market somewhere,” and he’s right. Sometimes it’s the entire market, but more specifically, it’s based around a theme.

When we have a broad market rally, the theme is to own stocks.

Pretty simple, right?



Mission Critical:
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As soon as I find a new trade, I send a text to my readers on this list. That’s the best way to ensure you can get in and out of these fast-moving trades in time. Click here to sign up.

Phone image

Unfortunately, it is not always that simple. But when you find a theme that’s working, you ride it until it ends. You’ll rarely time the top, so don’t worry about that.

And when you use that strategy to collect instant income, you never have to worry about timing the top anyway.

All that matters is that themes and big market moves bring about volatility. That means more income for us plus a larger cushion of security to weather any potential storms. Common examples are big reversals in a stock’s price once the theme’s excitement and momentum end.

In the current environment, I’m seeing opportunities to buy quality names for 30% to 50% below the current market price in special purpose acquisition companies (SPACs).

Since the securities are new to market, they possess small amounts of tradable shares, making them difficult to short. As such, traders are willing to pay up large for puts.

That makes us happy sellers ― especially in a quality name like Forum Merger II Corp. (NASDAQ: FMCI).

Taking a Bite Out of the Frozen Food Market

You won’t find this name on any building, in any grocery store aisle, or on many social media ads. But you will find FMCI’s new partner in mega stores like Costco, Sam’s Club, and Walmart.

The brand is Tattooed Chef.

Less than a month ago, Forum Merger Corp. announced a definitive agreement to combine itself with Tattooed Chef, a plant-based food company offering frozen foods in leading national retail food stores across the US.

And we’re not talking about no-name food chains here.

Tattooed Chef sells both brand-name and white label products in multiple retailers along with Costco, Walmart, and Sam’s Club. It doesn’t get any bigger than those last three.

Impossible Burger and Beyond Meat have put the plant-based protein (i.e. “meat”) category of food on the table. Tattooed Chef is serving up something different though.

Rather than competing with those two companies, Tattooed Chef focuses specifically on frozen foods, a section of the grocery store seeing increased demand from Gen Z and Millennials craving convenient plant-based meals.

The plant-based meat replacement segment has a current market around $6.8 billion. That’s what Impossible Burger and Beyond Meat are fighting over.

Tattooed Chef is taking a bite out of the $27.1 billion opportunity in prepared foods, pizza, vegetables, fruits, pasta, rice, and grains. Next, it plans on entering the $12.6 billion frozen desserts space.
Image: Tattooed Chef

Plus, this roughly $40 billion current and near-term opportunity only represents the market in the United States. Those numbers increase nearly six-fold on a global scale.

Strong Numbers Across the Board

Currently, sales slightly favor Tattooed Chef branded products versus the company’s white label offerings, but the mix is fairly close.

Meals make up a little more than one-third of sales with smoothie bowls and vegetables accounting for 20% each.

Currently, the company only generates half its sales from the Costco, Walmart, and Sam’s Club mega trio. Overall, it’s a diversified mix of sales chain, product, and brand.

Total revenue in 2019 totaled $84.9 million. Management estimates sales will skyrocket 74% to $148 million in 2020. By 2021, those numbers should approach $222 million, maintaining a stellar 50% growth rate.

Even better, net sales grew by 101% year-over-year and adjusted EBITDA grew by a staggering 264% year-over-year.

Net sales are growing faster than Beyond Meat, Simply Good, and Freshpet, as well as all the traditional food companies.

Not only will the post-merger company hit the ground running on sales and growth, but also with a stronger war chest of cash. Tattooed Chef will enter the merger, anticipated to close this quarter, with an additional $102 million as part of the deal.

We can generate attractive income and set ourselves up to potentially buy the stock 35% below the current price by doing the following:



Action to take:
Sell to open eight Forum Merger II Corp. (NASDAQ: FMCI) August 21, 2020, $12.50 puts at $1.20 or better.



If you need help placing an options trade, you can check out our step-by-step guide here.

At the time we sent the text message alert for this trade, the puts were trading at $1.30.

A Different Way to Play the Upside

The calls are priced beyond any level of sanity, so the additional move with FMCI would be to sell longer dated puts for bigger income, with the potential to buy shares 60% lower than the current price.

Here’s how you can participate:



Action to take:
Sell to open five FMCI January 15, 2021, $10 puts at $3.00 or better.



If you need help placing an options trade, you can check out our step-by-step guide here.

At the time we sent the text message for this trade, the puts were trading at $3.50.
Sincerely,
James Altucher

James Altucher
Editor, Altucher's Secret Income
 

Bogdan

Serf
Founding Member
Hello Barons,

I'd like to show you one thing you can do with options.

There is a platform for BTC/ETH options - deribit.com.

Comparing with stocks options this is a little more tricky because it is settled in the same coin.
Usually there's an underlying asset with a specific price in fiat and the option has a price in fiat.

Here, the price of the option is in BTC.

TRADE IDEA

My idea is to:
1. buy 1 BTC for example @ today's price ($9300) and deposit it on deribit.
2. sell 1 $13.000 25 dec 2020 Call against 1 BTC for 0.09 (or at a different strike - see the list below)

Screenshot from 2020-07-08 07-22-27.png

NOTE - You can immediately withdraw the premium for the sold option, but you have to keep 1BTC on the platform as collateral.

What happens at expiration.

1. If BTC is $13.000 or below you have in your account 1.09 BTC
2. If BTC is more than $13.000 you'l have in your account $13.000 worth of BTC plus 0.09 BTC
For example, if BTC would be $26.000, you would have 0.5 BTC ($13.000) + 0.09 BTC = $15.340
Why 0.5 BTC? Because you owe the value of the option which would be priced @ expiration as: (CallOption = BTC price - $13.000)

CONCLUSION
For the case when the option expires worthless, if BTC remains around your buy price, the gain is around $900.
For the case when BTC drops a lot and you decide you want to sell it to cut the loss, it's possible to buy back the option (it would be a lot cheaper). Maybe for BTC @$6000, this option would cost 0.05 BTC

For the case when BTC rises above $13.000 you give up the upside, but lock in the $13.000 price. Also, if you keep the premium from selling the call option until expiration, you could sell at the higher price.

RISK - You have to hold your BTC on the platform until option expires.

NOTE 2 - Could be done for fractions of BTC, for example if you buy 0.5 BTC you can sell 0.5 of a Call Option

Brindis
 

Bogdan

Serf
Founding Member

New Trade Alert: A Pick-and-Shovel Play on the EV Market
James Altucher
Dear Bogdan,
Don’t you think the participants in the Gold Rush would have loved to head west, stroll into the mountains, and find neatly organized piles of gold waiting for them?
I suppose a modern day equivalent would be dreaming about a stock skyrocketing higher, waking up the next morning, buying it... and then the stock skyrockets higher.
Mission Critical:
Sign Up for Text Alerts

As soon as I find a new trade, I send a text to my readers on this list. That’s the best way to ensure you can get in and out of these fast-moving trades in time. Click here to sign up.

Phone image
Unfortunately, life doesn’t work that way. And neither does investing.
You have to dig for treasure under the surface. And if you dig far enough into last week’s news, you’ll find a giant gold nugget in this week’s Secret Income name: Perceptron (NASDAQ: PRCP).
Driving Under the Radar
Our story starts with a special purpose acquisition company called Spartan Energy Acquisition (NYSE: SPAQ). How no one else grabbed that ticker before now is beyond me. It’s perfect.
On the morning of July 13, electric vehicle maker Fisker Automotive agreed to be acquired by SPAQ and list publicly with a value of $2.9 billion. By the end of the day, rumors that Fisker was in talks to use Volkswagen’s (OTCBB: VLKAF) EV platform began making the rounds via Bloomberg.
One day later, Perceptron announced it received an order from a Tier-1 automotive supplier for its in-line measurement technology to measure the battery frame, compartment, and lid for an upcoming new electric vehicle launch.
The particular supplier was tied to a Tier-1 automotive company with more than 100 facilities worldwide. Volkswagen describes itself as a company with roughly 100+ facilities worldwide.
If we keep digging, we find ourselves on July 17. As details of the Fisker-Volkswagen potential tie-up come out, we learn Fisker will likely use Volkswagen on the battery side of its platform.
Maybe it is just coincidence, but the pieces of the puzzle align perfectly.
The profile of the Fisker Ocean EV SUV fits well with Volkswagen. If we look deeper, we probably know why we heard from Perceptron on its new order. Perceptron is likely the swing component of the Fisker-Volkswagen deal.
Major Expansion in Electric Vehicles
Perceptron’s market cap is currently less than $50 million. But sales, WITHOUT the new order, are already closer to $70 million.
In an electric vehicle market with huge market caps, Perceptron could suddenly become one of the cheapest plays tied to the EV market. We’ve seen very few pick-and-shovel plays, but this qualifies as one.
A little bit about the company, stealing directly from how it describes itself:
Perceptron (NASDAQ: PRCP) develops, produces and sells a comprehensive range of automated industrial metrology products and solutions to manufacturing organizations for dimensional gauging, dimensional inspection and 3D scanning. Products include 3D machine vision solutions, robot guidance, coordinate measuring machines, laser scanning and advanced analysis software.
Source: LinkedIn
The company works in the global automotive, aerospace, and manufacturing space, aiming to help manage customer’s complex manufacturing processes so they can improve quality, shorten product launch times, and reduce costs.
While 80% of the company’s current sales come from the automotive industry, the auto industry only makes up 30% of the $10 billion total addressable market (TAM) in metrology.
I anticipate the automotive market will actually increase or broaden with the normalization and acceptance of electronic vehicles. Winning a Tier-1 automotive supply contract should go a long way toward Perceptron expanding revenue in the sector.
Adapting to a Volatile Market
However, the impact of COVD-19 still weighs on the company.
Until last week, shares were down 50% on the year. Even after a huge rally last week on the Tier-1 order news, the stock remains down 12% on the year.
Some investors may have been disappointed by the company’s lack of growth in its most recent quarter. Sales declined 19% year-over-year, but the company’s backlog only declined 13%.
Management said Perceptron experienced no significant cancellations in bookings or backlogs.
The company also secured a $2.5 million small business administration PPP loan in April 2020. So along with its $2.7 million in cost saving moves, it has current liquidity to meet company needs without having to come to market with a stock offering.
That doesn’t mean Perceptron won’t go that route, but when you don’t have to do it, you can often get more favorable terms.
The company has been around for 30+ years, so it’s worked through economic challenges in the past and survived.
And the extra benefit of three decades in business has helped management adapt to the ever changing business opportunities. Check out how the company has evolved to get an advantage over traditional metrology:
image
(Click the image to enlarge)
While all this simply reinforces my intrigue into Perceptron, the fact this may become a huge contributor in the EV market is all I really need to know.
Here’s how we’ll play it:



Action to take:
Sell to open 15 Perceptron (NASDAQ: PRCP) August 21, 2020, $5 puts at $0.85 or higher.




If you need help placing an options trade, you can check out our step-by-step guide here.
At the time we sent the text message alert for this trade, the puts were trading at $0.97.
Playing the Upside
For those folks seeking further upside potential, we can put a portion of that cash to work right away.
The next step is to use some of that income to buy call options on the same stock. By doing so, our potential profits are now limitless.
Here’s how you can participate:


Action to take:
Buy to open five PRCP September 18, 2020, $7.50 calls at $0.70 or lower.


If you need help placing an options trade, you can check out our step-by-step guide here.
At the time we sent the text message for this trade, the calls were trading at $0.55.
Sincerely,
James Altucher

James Altucher
Editor, Altucher’s Secret Income
 

Bogdan

Serf
Founding Member

July 27, 2020
New Trade Alert: A Niche Name in Electric Vehicles
James Altucher
Dear Bogdan,
Skate to where the puck will be.
An overused and paraphrased tidbit from Wayne Gretzky.
The idea boils down to looking ahead rather than down at your feet, but too many companies try to adopt this forward view with current offerings or products.
Mission Critical:
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Phone image
Over my career, I’ve watched company after company chase a hot idea, but rather than doing it with forward thinking, they try to take their square peg (current product or offering) and fit it into the round hole (current market need).
They aren’t skating to where the puck is headed. Instead, they are screaming at the puck to come to them. This is why many companies fail to capitalize on opportunities.
As we’ve discussed before, one of the biggest opportunities over the next decade resides in the electric vehicle market.
While we’ve been focused on big names like Tesla, Nikola, and Hyliion, there are smaller niche markets to consider, like the low-speed electric vehicle (LSEV) market, which is where we find today’s Secret Income name: AYRO (NASDAQ: AYRO).
Making Headway in the LSEV Market
AYRO designs and manufactures automotive-grade, all-electric vehicles for the LSEV market.
Rather than create and produce a vehicle, then try to fit it into a market in the future, AYRO builds with the end goal in mind. It builds with a purpose.
This is a niche market that doesn’t compete with the big boys of EV, but rather compliments them.
And as we’ve discussed in the past few weeks, the niche market may actually be the portion of the EV market with the most upside, least competition, and the greatest market need.
AYRO CEO Rod Keller worked on three-wheel autocycles in California, later ascending to the president of Segway. It didn’t take long before Keller helped orchestrate a sale of Segway to rival competitor, Ninebot, for a big gain.
When I identify smaller companies, leadership that has successfully taken a company public or sold a company is something I value highly. In many cases, it is a must-have for me to even consider a smaller name.
Prior to Segway, Keller worked in the early years of the PC industry, before we could stroll into just about any big box store and buy something off the shelves. Back in the 90s, the industry existed in a fragment environment.
Today, the electric vehicle market also sits disjointed, especially the LSEV sector.
This is a young industry, so revenue is slim right now. But financially, this $100 million company is in great shape after raising almost $30 million in three recent stock offerings.
The LSEV market is capital-intensive, so a big war chest gives the company an advantage.
Partnerships also help build that war chest, and AYRO has two good ones.
Strong Partnerships
Club Car, a subsidiary of behemoth Ingersoll Rand, signed a five-year licensing agreement for light-duty trucks in North America. The product is the Club Car 411. Additionally, AYRO is working on a Club Car product specifically in Europe and plans to expand into China as early as new year.
multiple body option

There is the potential for Ingersoll Rand to simply buyout the company, given Club Car’s dependence on AYRO. While there hasn’t been an offer made, Ingersoll Rand has requested a first right of refusal should any suitors approach AYRO.
AYRO announced a new facility in Austin, Texas that will ultimately be capable of building 600 LSEVs per month. While purpose-built, the product isn’t specifically built-to-order.
AYRO can see Club Car orders out about six months, but the immediate 30 days are set. That does provide the company flexibility in adjusting its builds.
The company’s products come from Shanghai about 40% complete, shells, essentially. Currently, it takes around 33 days to arrive from Shanghai, but management believes it can shorten that time to around 21 days with some minor adjustments in port of entry into the United States from China.
Once AYRO hits 600 vehicles per month in production, it could turn over 7,200 vehicles per year. The 411 averages around $20,000, which would generate around $144 million in revenue. With gross margins around 25%, that equates to $36 million. While it isn't yet able to produce 600 vehicles, the company should be able to improve gross margins by the time it reaches that point.
Recently, AYRO also announced an engineering partnership with Gallery Carts to launch the first all-electric configurable hospitality vehicle for on-the-go venues across the United States as well as universities and colleges. This partnership has already produced a purchase order totaling $584,000.
gallery

Two Enticing Market Opportunities
Currently, AYRO sees restaurant delivery and universities as its two biggest market opportunities.
As far as restaurants go, competitors are trying to take an existing vehicle and fit it to a specific market like restaurant delivery. AYRO's approach is to purpose-build a vehicle FOR restaurant delivery.
Delivery used to account for a minimal amount of a restaurant's revenue. It didn't matter that the margins were tiny, in some cases net negative, but with the impact of COVID, restaurants are reliant on take-out business now more than ever.
Aggregators like Uber Eats, DoorDash, and Grubhub are actually horrible for a restaurant's bottom line. So those businesses are seeking lower-cost ways to fulfill delivery on their own.
The AYRO 311 could be that solution. A three-wheel street-legal vehicle that can replace or reduce dependence on profit suckers like Uber Eats, DoorDash, and Grubhub.
Colleges and universities present another huge, niche opportunity.
There are 1,800 universities with 10,000+ students and an average of 400 vehicles on campus that need to curb CO2 emissions.
Club Car is bidding to turn over 20% of those vehicles to the 411 each year. Unfortunately, university budgets are virtually frozen due to the unknown financial impact of COVID-19. On the positive side, it should create huge pent-up demand.
Additionally, there will be an opportunity for AYRO food trucks as universities look to lessen mass cafeteria gatherings and offer food on the go. This will also translate to sporting events, especially football. Tailgating may reach the next level.
The company also has the potential for a data-gathering business thanks to its partnership with Autonomic, a Ford subsidiary. The vision here is a subscription-based fleet revenue income stream with business enhancing data.
Here’s how we’ll play it:



Action to take:
Sell to open 15 AYRO (NASDAQ: AYRO) September 18, 2020, $5 puts at $1.60 or higher.



If you need help placing an options trade, you can check out our step-by-step guide here.
At the time we sent the text message alert for this trade, the puts were trading at $1.60.
Playing the Upside
For those folks seeking further upside potential, we can put a portion of that cash to work right away.
The next step is to use some of that income to buy call options on the same stock. By doing so, our potential profits are now limitless.
Here’s how you can participate:



Action to take:
Buy to open five AYRO December 18, 2020, $7.50 calls at $1.60 or lower.



At the time we sent the text message for this trade, the calls were trading at $1.45.
 
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