A Double-Barrel Catalyst Trade

Last week Karim and I hosted our Boot Camp Trading event in Montreal, and we’re still coming down from the high of meeting our members in person.

Here’s what a few of them had to say about the event…

Comments by members who attended the Boot Camp Trading Event

Comments by members who attended the Boot Camp Trading Event

If there’s one thing we learned from the Montreal event – it’s the value of meeting with our members face-to-face. Which is why we’re already planning to do another event in the near future. So if you missed Montreal, don’t worry. We’ll have more details on our next meetup soon.

As for Catalyst Cash-Outs, today I’m going to show you why next week could be big.

First, the government is releasing the JOLTs report on Tuesday, July 2nd at 10 a.m. This report has shown potential for major overnight gains. For example, our return has averaged 114.53% based on our back tested data.

JOLTS Trades Track Record

But that’s not all.

On Wednesday, July 3rd, the ADP jobs report is also due for release. As you’ll see in the chart below, the ADP has shown potentially for 80% overnight returns based on back tested data over 12 reports.

ADP: Another Overnight Winner

So we have a situation where we have two of the strongest economic releases coming out next week.

And on Monday, I’ll be putting out a call/put combo trade that’s designed to capitalize on both the JOLTS and the ADP report.

This trade is known as a “strangle” trade.

How a strangle works

A strangle is a trading strategy that’s used if you think the underlying security will experience a large price movement in the near future – but, you’re unsure of the direction.

In other words…

Say a stock that you happen to like (Home Depot for example) is about to report earnings.

You think a strong earnings report could shoot HD’s stocks price up +$10.00.

But on the flipside, a weak earnings report could push HD’s stock price down -$10.00.

You’re unclear as to the direction of Home Depot…

But either way, you have a feeling that HD could make a big move.

In cases like this, a strangle trade would be the perfect way to trade HD – because this options strategy would be profitable no matter if HD makes a big move up – or makes a big move down.

As long as HD makes a sharp move in price, a strangle trade will win.

How can a strangle trade lose money? That’s simple. If the stock that you think is going to make a big move remains flat… or does not move higher or low enough – then your strangle trade will lose money.



The JOLTS and ADP reports early next week have shown potential to move the market in a big direction – so next Monday – 30 minutes before the close – I’ll be putting out a new trade that’s designed to capitalize if either report triggers a big directional market move. To see exactly how I’m playing these reports, I invite you to join me and Karim in Catalyst Cash-Outs.

Join now – to ensure that you’ll receive this new trade next Monday!