Wall Street Dinosaur Delivers a Triple Winner!

A couple of months ago, War Room members cashed in on a triple win with General Electric (NYSE: GE). It came when I recommended members buy General Electric calls after the company reported earnings and its shares were immediately clobbered.

But GE’s shares didn’t fall because of the earnings report… The report was great.

Shares fell because a short seller came out with a report that accused the company of cooking its books. This led to the perfect opportunity to buy…

Why?

Because concurrent with its strong earnings report, GE came out in full force to defend itself immediately, and, as a result, its shares didn’t break below critical support.

War Room members cashed in!

On October 16, I recommended War Room members take a strangle position well before GE planned to release its next earnings report on October 30. A strangle is when you play both sides of a trade, betting shares could move either sharply lower or sharply higher after the company’s earnings release…

Tons of War Room members bought in for pennies on the dollar.

Why would we go back to the well again?

Well, after GE refuted the short seller’s remarks, insiders at the company picked up loads of shares on the open market three months before the current earnings release. That’s an eternity, and investors are quick to forget what happened a day ago – let alone three months ago.

I made a note of it – just like you should when a major event occurs. I knew that in the coming period between earnings, GE would trade up and down. I was hoping it would consolidate at lower levels, and it did.

After GE’s earnings release, its shares soared by more than
10%. The result: a 123% gain on our play. And that was after members took money off the table to cover their initial cost.

Some members played just one side of the trade, the call option. They took in 400% to 500% on their trades!

Action Plan: The lesson here is that it pays to follow certain companies on an uptrend with executives buying heavily into that uptrend and publicly saying that the business is moving in the right direction.

It doesn’t work all the time – nothing is guaranteed on Wall Street. But, when you are riding a horse that continues to pick up speed in a race, the odds are in your favor. And, you can bet, we will ride the GE horse again in the future. Get in on plays like this and more by joining me in The War Room today!

Here’s what some members had to say!

“In @ .13 out @ .80 BAM!” – Glat

“Leaving for the day and set a sell on second half at .65. Sold almost instantly, so two great profits but I might have left some on the table… profit is good 244% and 304%.” – Dean B.

“86% profit on GE paper trading. New to the War Room. (only 2nd trade in the War room.1st trade in paper money was GM with 6% gain) thank you!” – Madeline Z.


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