From the Desk of Steve Strazza and Alfonso Depablos
The largest insider buy on today’s list comes via Form 4 filings by Stellantis N.V,, which revealed new purchases in Archer Aviation Inc $ACHR worth a total of $8,270,950.
The CEOs of The GEO Group $GEO, Biglari Holdings Inc $BH, and OPKO Health Inc $OPK all filed Form 4s revealing purchases of their own stock.
In today's edition of "This is NOT 2023", here is the U.S. Large-cap Consumer Discretionary Sector breaking down to new 52-week lows relative to the rest of the market.
I received a great, and well-meaning question from a new All Star Options subscriber about a recent trade we entered in $VLO that offers a great lesson or reminder to those who need it.
Question:
What are your thoughts on when the value of your options hits a 50% gain in one day? The September 175 calls for VLO I purchased hit +48% yesterday. Do you trim/roll/close with such a quick gain? I understand this is more of a personal preference as it relates to what you want to make on a trade, but if you hold those 48% increases, they could eventually increase to +150%!
He kinda answers his own question in the end, but here is my response:
This morning, I ran our emerging cryptocurrency scan, which alerts us to when a cryptocurrency exceeds a certain market-cap threshold for the first time. When a cryptocurrency is climbing the market-cap ladder, we're the first ones to know about it.
I couldn't help but mention the cryptocurrency we got alerted to today.
As most of you know, we use various bottom-up tools and scans to complement our top-down approach.
It's really been working for us!
One way we're doing this is by identifying the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega-cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn't just end there.
We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.
One sector that I feel a bit underexposed to right now is real estate -- particularly REITs. And when a dominant player in New York City's commercial real estate sector pops up in our scans with a beautiful chart, it feels to me like this one might be set to surprise a lot of people.
