Banking On Wall Street Wisdom: 157% Profits In 2 Weeks!

IMMEDIATE ACCESS: You can find the transcript/video of the beginning of Episode 6 of the Monthly Milestone podcast below.
 

Nikia Wade: Hey guys, I am your host Nikia Wade, and I would like to welcome you back to Monthly Milestone where we interview analysts, traders, investors all over the country who are leading the pack. And I'm so grateful and happy to have back our in-house Benzinga options expert, Mr. Chris Capre who brings a wealth of wisdom.

Chris is very busy and made time for us to talk about a really exciting play that he recently had. I want to just hop on into that. But first, I just want to thank you for making the time for us today, Chris. 

Chris Capre: Thank you for having me. It's a pleasure being here. 

Nikia Wade: Yes, absolutely. Your track record speaks for itself. There was a particular options play that you had, and you recommended it to your followers at 157% in profit in a matter of two weeks.

So to you guys watching and listening: Try to do that on your own. We always recommend not trading alone. And this isn’t a one-time thing. Chris, you have plenty of trades that have performed well.

But I want to get into this particular one because it was a recent trade of yours. Now, without telling the name, let us know: How did this get on your radar? What caught your attention, and how did you know that it was the right time to pull the trigger? 

The 3-Point System

Chris Capre: This is a great question. So I’ll simply explain my system. We can kind of use the acronym “PFP.”

First I look for Positions, specifically where traders and institutions position in the market. So I call those positions or positioning.

Then I'm looking at Flows on the day or on the week. And that is a combination of what's happening in the share market, who's buying and selling shares, how much, and how aggressively they are doing that.

And then I'm also looking at the flows as well and options and seeing how those two play out on any given day. So that's kind of the part.

And then the other part is the Price Action. How is price manifesting in the chart in relation to these flows? And so, you know, when there's an imbalance of the buy side, if it's a strong enough imbalance markets are going to move up. But how that moves up and what it looks like on the charts can give us a lot of clues as to how aggressively it's being bought.

How much of an imbalance is there in the markets? How many people are buying versus selling? You know, where is the momentum shifting to? Is it transitioning?

This simple model I use includes: Positions, Flows, and Price Action.

It’s this matrix that I use to help make my decisions on every single trade. And it's the basis that kind of lined up perfectly for this particular trade that, you know, we're talking about where I did 157% on in a couple of weeks.

I look for situations where all of those line up because when they're all lined up, then everything on the institutional side and on the retail side are all communicating the same thing.

This increases the probability that we're going to go up or down, depending upon which way those flows and positions are moving and how much can it move. Anytime I see those line up, I take a trade. I don't care whether it's bullish or bearish. If that is where everything is pushing, then I'm going to take that trade.

So any trade that I take has to have all three of those in alignment. And this was no different. And it's just one of those situations where it all lined up and moved very nicely.

Our direction took profit. Within the first day, it was already in the money and it never went into the negative. It just kept going and going, staying in our favor. So it was just a nice alignment of all the three. I pulled the trigger, and that's how we did it. 

Nikia Wade: That's amazing. So it sounds like with your system, and you're pretty much blinders on. It doesn't matter what's happening in the market, whether it's a bearish or bullish market. You're saying as long as these things happen with your system, it's time tested. And you know that the time is right to pull the trigger, right? 

Chris Capre: Correct. And there's always going to be a lot of talk and rhetoric and narrative about a stock. You can have some people saying, “Tesla's a great stock.” That has a lot of narrative on both sides. There are people who are super bullish, and no matter what comes out, they're always bullish. And everything that comes out, whether it's positive or negative, they always try to find a positive spin on it.

And there are people who are uber negative about it, and they always try to find a negative spin on it. Anything that comes out positive or negative, they see it through that negative filter. And so that creates a lot of narrative and rhetoric around it.

This methodology doesn't care what's going on with the rhetoric because it doesn't really matter what an investor or an analyst or trader says. But when they put money on the line, when they put their own capital on the line to be bullish or bearish, that does say something. And that sometimes aligns with the rhetoric and sometimes it doesn't.

But to me, it is a much more consistent signal than what people are saying, what people are analyzing, or what people are thinking is that money is the final kind of expression of what they really think and believe. And those can be in alignment with the rhetoric or not. But the flows are going to dominate if you have. It doesn't matter if the rhetoric is negative after an earnings, if the flows are bullish, that's not showing up, regardless of how much rhetoric and narrative there is on it.

And if there is really good earnings but the flows are bearish, that stock is going down regardless of how many positive things are going on. So the miners analogy you mentioned is kind of appropriate to say, in the sense that we just look at the dominant footprints, market, and what creates things going up and down. And that's order flows and positioning, and it's reflected in the price action.

Ignoring Idle Chatter: What REALLY Produces Results

Nikia Wade: That's awesome. So now I'm curious. And then again, we're not going to give the name quite yet. But did you find at the time of that options play, was the market chatter more aligned or opposing with your move to go forward? 

Chris Capre: Great question. It was actually kind of mixed. So this particular stock, it's not that this stock generated a whole lot of narrative by itself per se. It's not quite as popular as Tesla, Apple, Nvidia, or AMD, which are really hot right now. But it was one of those that people had mixed views on, and I was totally okay with that because everything else was screaming to me that this is going up.

The system was just all pointing upwards on this. And I had the intuition that if these things happen in the market, then this would be very beneficial for this particular sector that the stock is in. And after the FOMC had come out in mid-November, that's what started to happen. Everything started to kind of move into a place where it's like, okay, we feel the Fed had said this from the FOMC, and so now we're going to start taking positions based upon this.

That created a whole change in positioning and direction and even just kind of the verve in the markets after that FOMC, and this was one of those stocks that I had isolated. They said I think this could be a beneficiary of this if it comes out this way. And the FOMC came out that way. And then the positioning, the flows, and the price action all came out in alignment. So it was just a no-brainer. We had to take the trade. 

Nikia Wade: That's amazing. So the people watching and listening, let's just let them know your options play that got 157% in profit in just two weeks flat.

Chris Capre: Yes, the name of the company is…

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