Cliff Notes: HOW WE MADE MONEY IN STOCKS LAST WEEK - podcast episode cover

Cliff Notes: HOW WE MADE MONEY IN STOCKS LAST WEEK

Feb 13, 2022•15 min
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Episode description

In this Cliff Notes we discussed the top lessons from last week and what option plays we took part in. #stocks #investing #stockoptions 


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Transcript

Speaker 1

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Sponsored by the United States Department of Homeland Security.

Speaker 3

Speaking of options, let's let's take a quick detail. Troy, I want to talk about doing something that we did the other day on Friday, was this show.

Speaker 4

I was joking. Go ahead, audible.

Speaker 3

Audible Oh, no, Troy, we did something that I don't I don't usually do. I went against my usual pattern, but every now and then I deviate. And there was an interesting thing that you had brought to my attention of Robin Hood. Shout out to Robin Hood and you, you know, we looked at the stock and the stock was down I believe eighty five percent from his high. And you had all this details on, you know, Robin Hood, and while you know, thought that it would be a

good play and different things of that nature. So we put an option call on Robin Hood. Did twenty dollars option call?

Speaker 2

Or sure? Made it?

Speaker 5

Oh?

Speaker 4

Was it? So?

Speaker 6

At the time the stock was like at ten and our bid was we got like three?

Speaker 2

You could so?

Speaker 3

So yeah, it was up twenty five percent today today, quick quick, twenty five percent profit. Like I said, I usually don't do individual stocks.

Speaker 6

But so imagine imagine the conversation I had to have with them for them to do it.

Speaker 3

I did, I do believe, Why would I do it?

Speaker 7

Now?

Speaker 2

Y'all talk to him for hour? Right?

Speaker 4

I know I didn't get a text about it. I know you'll argue for it was a fifteen minute call.

Speaker 6

Uh, And what happened was you know, like when you watch some of these investment shows, they always talk about unusual activity at a certain strike price. And so obviously we saw Robinhood just take a hit, right. They missed on their earnings, they missed almost on everything, that guidance everything. They dropped down to nine forty four cents. And now we you know, we found out that Kathy Wood bought thirty one million dollars worth of shares, but we didn't

know that. And so I was just looking at the actual stock. I'm like, all right, well, let's see how many people are making puts on it. And when I looked at the puts, I actually saw the calls had an unusual number of value at the twenty call. And that wasn't just for like twenty twenty four. It was like short term and long term. I'm just like, man,

this is unusual. And so I started digging deeper. I wanted to look inside of the history of the options, see where originated at At one point, it was that twenty one hundred a contract. So when I see it down at three hundred and fifty dollars a contract, now I'm interested, right, because I'm looking at the Foor. I'm like, all right, well, has Roberhood hit its floor? And so then I had to show them why. I think it's if it hasn't hit its floor, it is damnar and

near it the upside. Right, if it even if it moves five to six percent in a year, we can get to twenty eighteen dollars twenty dollars by twenty twenty four. Right, they still have over forty million users, they still have crypto as an asset that they can use when they obviously they're dropping their crypto while So it was all these things that were pointing toward it, and I'm like, all right, we don't have to load the boat on it,

but let's just let's buy a few contracts here. And obviously it worked out and our advantaged for the first couple of days. We'll see how it does over the next couple of months.

Speaker 4

What's your what's your percentage actual prices that you guys are going for?

Speaker 6

Selfishly, I like anything over fifty to one hundred percent on this one. So yeah, that's what that's my range. If it goes over that, I'm happy, But.

Speaker 3

I think one hundred percent is definitely doable. Monitor the situation at fifty percent. See see how more comfortable. And I feel comfortable about Robinhood though, because I actually got a chance to actually visit the facility in Silicon Valley and speak with leadership.

Speaker 4

You know how they got subtle shade like your phenomenal, not the leadership, not the white done oh man. So Mike clipped that up.

Speaker 3

I was lot. I was fine.

Speaker 4

I was you in a good mood today you have to run around, go out through the city.

Speaker 2

I feel that was fun.

Speaker 3

So but yeah, well we'll see. But but yeah, no, I just go Troy, like I said, every now and then, you know, we just do something. You know, I didn't put too much in, but Troy he's always doing research and he's always looking at like volume plays volume that's coming into the auction calls. Oh that he does that stuff all day. So yeah, I just wanted to let them know that.

Speaker 4

Yeah.

Speaker 6

Yeah, shout out to everybody that was on. I had held a little something for people who attended.

Speaker 4

App a little something.

Speaker 6

You had an exception an exceptional performance at the Apollo on our people who attended the Saturday gathering. I should call it that because it wasn't more than just to sit down with a g It was a learning session, but it was gathering.

Speaker 2

It was a nice social environment. We had.

Speaker 6

We held something for them this Saturday, and so if they were there, we talked about it. Hopefully you got into the positions early this morning because it was still at that that three fifty range. I know it got like eighty five. So that was a nice play. That was a nice one.

Speaker 3

Yeah, we need to we need to Don de Marco.

Speaker 6

Don DeMarco, Marco.

Speaker 4

Sety should get out in nineteen fifty eight, like because I know you're a conservative, so let's start take profit at nineteen fifty eight.

Speaker 3

Appreciate that.

Speaker 2

Thank you? Yeah, yeah, the price talking erness? What's up?

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Speaker 6

Front of this is twenty is actually nineteen fifty five. That's interesting. You said that name most analysts, and that's one of the things I was I was showing people how to research too is let's see what the analyst are saying. So it's over two hundred analysts. You study that, you get an average. So the average is about nineteen fifty five for December of this year.

Speaker 2

So that's interesting.

Speaker 4

If you guys are not in it already, please don't chase it. I don't want you to die.

Speaker 2

I want you.

Speaker 4

Didn't choose the shot when you're supposed to family.

Speaker 2

We got to f find a new gym, find a new one.

Speaker 3

All right, let's talk about this. Okay, what are three big lessons learned from last week's drop?

Speaker 4

Number one? Everyone is focusing on the short term, and I think media does that to trick you out of your spot. Like we had three to four weeks of a pullback. That's nothing. Some of y'all have been in bad relationships five years and you're like, man, the market's crash and I'm like a relationship crash, And why don't you get out of that moment of silence? Okay, I'll keep going. Number two, Hold.

Speaker 2

On, I got you.

Speaker 4

Congratulations, you plagued yourself.

Speaker 2

Number graduation.

Speaker 4

Now I must stay have water, I'm peaceful today, right and meditate. It fell a coconut oil on. You have to focus on the highest quality assets. So for those who bought it in at great prices on crypto stocks, you were fine. It wasn't that hard of a drawdown. If you're seeing something fall back fifty fifty percent, sixty percent from a year ago, it wasn't a good asset to begin with. And then number three, I'm realizing almost

everybody is buying way too damn high. Like when you buy a good company, good business, good brand, you don't have those same kind of fears. Now for my veterans, I've always told you when it's a bloody week like that or two weeks like that, don't open your account. It makes it a hell of a lot easier because then you'll start to have fomo and move things around that you shouldn't. But people are buying too high and hoping, and I tonight on stock up Call, I'll walk you

guys through. But I want to tell you guys, like if it's if the highest one hundred, when it gets to ninety five, you.

Speaker 2

Have to stop.

Speaker 4

You have to stop buying and wait for it. And now, remember a few months ago, I was like, hey, crash is gonna come there with some people in the comments who were not pandas are earners and they weren't familiar with us, and they're like, no, it's not going to happen, and now we're there. Now even everybody on the bigcoin side, it's like, Yo, thirty is probable and if thirty breaks

twenty one, who will be sitting there for you? You have to wait for the right price to buy the best assets in the world and not gamble And shout out to Chris. He had a great quote. He was like, how do you guys say you want generation of wealth and you won't hold it stocked for three or four weeks? Like it's y'all just saying it because it sounds cute or ig because you want big girl to dmu.

Speaker 2

Stay dedicated to the craft.

Speaker 4

If you look at any stock over a five to ten year period, crypto five to ten year period, you would be crazy to get out of anything that that is about quality. Don't do it?

Speaker 2

Yeah, I would say, execute man.

Speaker 6

That was That's the biggest lesson, right, Like we can talk about the price points and we can talk about entries, but if you're not actually executing on it and what you just holding the information and that that becomes super dangerous, right, Like you can know a lot and do nothing with it, so that you're like they always tell you about like knowledge is powered. I'm like, nah, man, knowledge is power when it's executed, its graduated when you execute it. That's

when it becomes powerful. So like execute like we told real even hold real quickly. Yeah, we spoke about four stocks that we invested in, but there was some other ones too that you could have, right if you if you would invested in Netflix when it was three seventy six, right, think about this, or it was at three seventy six within three days, within three days, it's up.

Speaker 2

At four to twenty five. It got up to today.

Speaker 6

Right, we're talking about a company that you've been paying probably for the last eight years without unconsciously paying, right, and they raising prices on your subscription now and you're not even gonna blame. So it's a company that you're already spending with. It actually hit a low for fifty two weeks, and it's like, all right, well is this a good point? Yeah, we gave you four and if you were watching Netflix, you couldn't obviously had a nice, a nice run up.

Speaker 3

Yeah, if you're playing these option calls too that you gotta when something hits a fifty two weeks low, you gotta start to consider. You gotta start to consider, even if it's not a long term play. I mean even zooms up ten dollars today, it's.

Speaker 4

Not really going back to the ground up.

Speaker 3

Yeah, but I mean if you had, if you, if you did the option, you're gonna make some money. So you know it's.

Speaker 2

One of you.

Speaker 4

But I want them to come back and blame us, and Shorty to me, Oh no, we'll disclaimer.

Speaker 2

I'm not telling you to do it, please, so hopefully go through that.

Speaker 3

Yes, yes, no, I'm not telling you because.

Speaker 4

Then they gonna have their own mic clipped it up. We gotta be my play defense. You're not gonna strip being no pick six over here. Nope, you had no pick six.

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