The Anatomy of an Overnight Super-Speculation
You’re in for a treat today.
In this article, I’m going to show you one powerful way to execute a War Room speculation trade.
This strategy provides massive potential upside, and yesterday I used it to bank a monster overnight winner.
Before I get into the result of the trade, let me set the scene…
First and foremost…
We just entered the month of November, which has historically been one of the strongest months of the year.
I posted this note in The War Room this morning:
Based on that historical data, you’d think that November would be the ideal time to speculate using call options.
But in this case, I did the exact opposite.
And here’s why…
Global makeup, skin care and fragrance leader Estée Lauder (EL) was getting set to report its latest earnings.
Even if you’re a man who has never applied one iota of makeup in your life, I’m sure you’re familiar with EL brands like…
Clinique, Origins, M·A·C, Bobbi Brown Cosmetics, La Mer, Aveda, Jo Malone London, Tom Ford and more.
Going into earnings, EL had been consistently moving lower.
As you can see, the EL chart has been one of the most consistent downside charts you’ll ever see.
It’s moving down at a 45-degree angle!
Once I saw this obvious downside trend, I looked at EL’s last three earnings reactions.
And then the super-speculation became crystal clear…
Over its previous three earnings reports, shares of EL had been stuck on a downward death spiral, moving lower by 15%, 7% and 13%. So I applied one of the most simplistic – yet powerful – trading mantras in existence today…
“The trend is your friend.”
Knowing that EL has been stuck in a downside trend – and that its previous three earnings reports triggered downside moves – I recommended November $130 puts for $7 per contract. And guess what happened the next morning…
Right on cue, EL reported weak earnings… the stock got decimated, dropping $25 at the open… and War Room members cleaned house. The puts they entered for $7 blasted up to the $21-$22 range, making them a monster overnight return of 205% in less than 24 hours.
YOUR ACTION PLAN
Many War Room members wrote in to celebrate bagging this elephant-sized winner. I’ve included some of their notes below.
As you read through them, ask yourself…
Would you like to start hitting these monster overnight winners?
P.S. Here’s just a small sampling of the EL notes I received…
“In $7.30 [EL] and out $26.30. 260% Gain [in one trading day]. THANK YOU BRYAN!!!!!! BEST % GAIN EVER!!” – Lance
“I closed the 1 Shares/Contracts [of EL] I opened at $7.88 for $22 [in one trading day]. This has to be one of the largest winners I’ve had. Great job BB!” – KeithB
“1 contract [of EL] BTO $7.95 STC $22.70 185.5% – + $1,470.00 [in one trading day].” – VT Dude
“TY BB!! In [EL] $7.80 & out $21.00 [in one trading day]. WOW!” – MarkM