Potential 100% Upside In a Matter of Weeks…

Visa, Mastercard and Paypal have all experienced nice pullbacks.

I own all of these companies currently but I like to get “overweight” great companies on nice pullbacks (with call options in order to mitigate risk).

Let’s look at the dips…

The above 6 month chart shows the dips of these companies versus the SPY (if you don’t know why the SPY is so important then do yourself a favor and take “Stock Market Investing Made Incredibly Easy” parts I &II).

I bought call options on PYPL and MA last week….

I like to buy call options with a little intrinsic value in order to save on the cost of time-value (if you don’t follow that then take action and take my “Options Made Incredibly Easy” course).

Here is my super duper simplistic thesis…

  1. Dominant companies tend to rebound on pullbacks (especially in this market.)
  2. The fintech sector, in theory, should benefit from the inflation to a certain degree because the higher cost of goods is making the transaction costs higher as people spend their money.
  3. With the holidays approaching more transactions should be on the horizon
  4. MOST importantly I believe these companies are here to stay for the long-term and will continue to be needed by consumers around the world.

What can happen from here with these trades?

Scenario one–> The stocks can trade tight up until March (the expiration date for both) in which case I will lose the cost of time-value. This is rather unlikely and not the worst thing ever.

Scenario two–> The market could tank or the stocks could continue to dive and the share price of PYPL and MA continue to decline in which case I could lose about $7,000. If this happens I will happily buy even more options contracts on both companies. I always like to have a share price in mind that I will buy more shares and more call options on these companies. I will do another layer of buying if MA gets to low 300s. If PYPL dives to around 205 I will do the same.

Scenario three–> These stocks rebound in a few weeks and I will sell the options when they are up around the 70-120% range.

I will keep you posted…


“Options Made Incredibly Easy” is on a huge sale the Month of November!! $299 marked down from $500!!!

Take action and become empowered!

Email any questions to brandon@streetwiseinvesting.com

Make sure to subscribe to the Streetwise Investing youtube channel!

SHARE THIS ARTICLE

Share on facebook
Facebook
Share on twitter
Twitter
Share on reddit
Reddit
Share on linkedin
LinkedIn

OTHER ARTICLES FROM STREETWISE INVESTING

COURSE REVIEWS

Samuel N.
Easy to understand and compelled me to take action
Read More
I have read many books on the stock market and even spent a lot of money on subscriptions that overpromised and under delivered. This course teaches real investing. Investing that can make one a millionaire. This is the best course I have come across on stock market investing. I highly recommend!
Patricia W.
This has to be the best options course available!!!
Read More
I had know clue what options could do! Brandon takes a complex topic and makes it so simple to understand. He walks you through a ton of examples and outlines various strategies throughout the course. I look forward to using these instruments regularly as I navigate the markets. This is a must own course.
Aaron S.
Great place to start!
Read More
Not only is it a great place to start, but with only the information in this course you would have enough knowledge to take control of your portfolio and build wealth over a lifetime. Brandon takes a simple, common sense approach to investing your money and making it grow with minimal confusion. Anyone can understand the material he presents and would be silly not to take his advice. He has more advanced material for those who wish to be more active in the market, but it’s not necessary to build steady, passive income for the rest of your life. Great course!
David D.
Fantastic course for a novice investor!
Read More
Coming into this course completely uneducated on investments and company evaluations, I am leaving with a great understanding of the market. More so I am leaving with the confidence that I can invest myself, and the potential outcome of not investing at all. I will be back for the Options course. Thanks Brandon! Great Course!
Previous
Next

LISTEN TO THE PODCAST