PLTB member and potential new members -
The doors are officially OPEN for 50 new members!
New FXI bear call spread:
Good Tuesday morning, ladies and gentlemen. Welcome to our primary live trade brief. This is day whatever. It is two, three of our full our free full throttle training. So welcome aboard for those of you that are potentially new.
You're joining us in a regular member brief here at 10 a.m. Every Tuesday we do the the primary brief. You also just got a great example of how awful e-Trade is and why I'm probably taking my business somewhere else.
They're just awful, their platform's been slow. It's been down lately, their customer service, sucks. I have a couple large accounts there and you know not that that well it actually does mean I should get different service at my level, but it doesn't matter with you're a platinum member, not even answering the phone folks!
I helped build a brokerage, firm called Options House and this, we would have been blasting out messages and at least giving you a heads up, because that helps prevent maybe the deluge to customer service and all those folks getting out of that in a sec.
Whenever you're having problems with your platform, you over communicate you don't under communicate, so e-Trade sucks and I'm most likely going to be leaving them soon.
In my personal accounts, I'm long Amazon synthetic stock. I'm along Amazon actual stock. I'm long MYRA stock, which is a big mistake. I'm long XLK with a bull put spread. We did that yesterday in our weekly options brief by the closing bell that trade was up 52, 53 in a couple hours, so really good weekly options trade so far on XLK and then in our Solo Amazon brief, which isn't part of full throttle. We looked at putting on an XLY bull put spread, which is also looking pretty good. We're done. Our welcome aboard brief Sunday night. We're done our weekly options brief, which was yesterday. We're in our primary brief. We'll probably open our slots here at the end of the brief so you pay attention and then tomorrow at noon we're, going to do AR, which is accelerated retirement, and then we're, going to wrap up Wednesday night. Again, nobody else does this folks. Just about everybody else in the financial education space gives you 57 power point slides and tells you to be a member based on what they've done in the past, showing you trades from like 10 Years ago.
I open up the doors and you see what we're doing live. I don't get how folks do that. They listen to some dude or lady for an hour with a bunch of power point, slides and then sign up for something. That just makes zero sense to me. Anyway. Is there no full throttle later this pm? What do you mean full throttle, no full throttle. The actual eight sessions will probably be in February sometime, the eight sessions. Primary live trade brief, quick intro, we're gonna do, take a look at our performance, strategic and operational overview.
We'll get tactical and look at some trades and we'll be good to go and then, like I said, we'll open up some slots, 50 annual memberships. When we get 50 we don't take any more. It's funny that every time we get a new kind of batch of folks through our lead generation they don't believe it. People are like once we close the doors we close the doors to this full throttle program. I can't stand trying to teach 900 people something so we don't do that. The quality suffers. So we keep the slots limited.
We're actually people who do that and it's interesting to see some of the emails to support like hey I'm ready to join it's like well. You can wait till the next one to next quarter and people get pissed off, apparently can't listen or read and you shouldn't be able to create options.
I prefer annual memberships folks because to be brutally honest, the month-to-month folks usually are the high maintenance people and I prefer to have people who are motivated and ready to get airborne and ready to to drive the fight full throttle training which Rick just asked about. I do once a quarter. It's eight live sessions, Tuesday, Thursday nights, start at about seven o'clock, eight o'clock just depends. And we go for an hour, hour and a half it's after market close with a glass of wine and we sit here and talk about spreads, about condors, iron, condors, whatever it is whatever the tactic is that night, nobody leaves with a question mark over their head or a clue bird sitting on their shoulder.
Man, it is in-depth training. I recommend, strongly recommend you open a paper trading account somewhere. Everybody's got a paper trading account. That's what you should be doing. You should be blasting trades in a paper trading account before you know what you're doing.
You got to go to the simulator folks before you get into a real jet or you're going to kill yourself, period. So, like I said it's eight live sessions, four times a year and we'll do our next group of eight sometime in February I got to take a look at my schedule. You've got to watch the replays . I think we have every full throttle on there for the past 10 years. So guess what, 10 years ago, a covered call was a covered call and it'll be a covered call 10 years from now.
What changes during the different full throttles once a quarter are how we're applying the tactics. If you watch the last full throttle, it was around the election. There was different stuff going on, so we're using different tactics.
If you watched the one before that, I think it was during this summer, as we were rebounding from the covid crash, so watch the previous full throttles. You get access to those and that is a fantastic deal for you.
But here's kind of the flow of what full throttle training is. If you have no idea what an option is and you feel like you're drinking from a fire hose that's perfect, because we're, going to start grabbing the fire hose there and then. By the end you'll be taking a sip because it won't be drinking from a fire hose anymore.
Here's what full throttle is, so you get access to the eight briefs that are live and all those replays from previous full throttles and then you get access to the four live trade briefs I do throughout the week.
We did weekly options yesterday at noon. Right now we're doing the primary live trade brief at 10 am. We do AR which is accelerated retirement Wednesday at noon and then we wrap up our week on Thursdays with a weekly debrief, which is it 10 am.
It's, pretty easy to remember that stuff, noon. 10, noon, 10. Okay! Pretty easy to remember that if you've heard of our other service called Solo Amazon, it's not included in Full Throttle Max. It's a separate external service and we do that every Monday at 2 pm and we can talk about that in a couple weeks. If we're so inclined.
I'm not going to cover the performance or anything anymore because I want to get airborne and start looking at stuff in the market because that's more important. But, just know that 2020 was our best year but looking at 2020 is like driving around the Indy 500 looking in the rear view mirror. That's why I can't stand going to these presentations, watching people talk about what they did. You're only as good as your last trade man and you have to be the power of now man.
You got to be present and I'm showing you what we're doing presently and nobody else does that in this in this community or if they do they charge you like 500 bucks for a week.
I'm like are you high in Democrat or hypocrite news, Governor Cuomo, Governor what's his name Newsome out in California? I think we're in a different place. Now, of course, we are Joe Biden was elected. You destroyed your state, you destroyed your people, you destroyed your businesses, you let BLM and Antifa riot for seven months and now with Biden president maybe we'll, we need to open up, we can't, keep the economy closed, it's a disgrace, Steve and you show your losses too.
Exactly, total transparency. I do, you got to show your losses. Man, it's so funny. I tell a story about when I was up in that firm in Chicago. I was doing due diligence on thestreet.com and, anybody remember Lenny Dykstra? I grew up watching Lenny Dykstra. He was a Philadelphia Philly.
I thought the guy was great, great basketball player. He got into like finance and options trading and he had a service on the street.com. I forget what it was called, but it cracked me up man, because I've, never had a losing trade and you know what he did. He never closed a losing trade. Excuse me, he just kept rolling it. I'm like looking at his stuff. I'm like oh, my God, that's one of the reasons he ended up in jail or something like that, but I think for IRS or something like that.
Folks, when I built the Options News Network up in Chicago, my sister company was Options House, right? That's a broker, dealer, options, news network that was about training and all that stuff.
So we had what we call a Chinese wall in between us right, because we can't give investment advice. They can. We can talk about stuff in general, so I lived in the compliance officer's office because you know there ain't no gray in the financial community. There's black and white so being on this side of the fence, I'm very well versed in not doing wrong and that's one of the reasons we didn't buy thestreet.com. You know there's a lot of a lot of snake oil running around out there so Steve. I appreciate that you got to cover the losses. Man because it's, so stupid not to cover losses because then when people get on board and you have a loss, they all go ape.
I'd rather over talk about the losses than under, but anyway, the the good thing obviously, here at Top Gun Options is we have more wins than losses, or you wouldn't be in business anymore. Okay, quick, strategic and operational brief going around the globe.
Nothing's really changed except things are getting worse. Things are getting worse over in Taiwan. china is really, really starting to... I saw a one of my defense briefs, just reading through stuff, a Chinese tanker was caught with the North Korean or something like that transferring fuel. An Indonesian coast guard cutter like boarded it or something like that. Just because our media aren't talking about it doesn't mean stuff isn't happening. Clearly North Korea is skirting sanctions. Clearly, North Korea is going to start lighting off bottle rockets again because Democrats, usually when they're in the presidency and when North Korea lights off bottle rockets we go running with cash in hand to pay them off and then the regime keeps it and their people keep starving. At least Donald Trump stood up to the dude. Like I'm going to kill you he sat in his golf course and I'll never forget in New Jersey.
He's like, I will reign fire and fury down on this guy the likes of the world has never seen. I have it on very good authority that he might have even sent a picture from a predator whatever it was with like that dude in the cross hair. He's like I'm not gonna go to war and kill 25 million North Koreans. I'm gonna kill you and the guy's like holy man, this guy's nuts. He's not here than me. Maybe we should talk, so North Korea, all the acronyms that I used a couple years ago are back right.
Democrats, Russia, Iran, North Korea, China, yeah, it's kind of back folks. The drink is back, d.r.i.n.k. Here's what's going to move the markets In 2021, Democrats, Russia, Iran, North Korea, China, there are your strategic threats to the United States.
Now are Uncle Jerome and grandma Yellen strong enough to fend off something like that? Do you remember years ago, when, oh Donald Trump's going to get us all killed in a nuclear war with North Korea? When the Democrats in Hawaii you know they came up with the alert system? Here's how stupid government employees can be. Hey, let's run our emergency missile test system. Let's test our system here in Hawaii. Let's put it into test mode. Do you want to do a test? No. Do you want to send a real missile alert? Yes? Are you sure, yes? Real missile alert sent. Everybody in Hawaii goes ape. Dude dies of a heart attack and they didn't even fire the employee. They sent him to retraining.
If we ran our country or could you imagine running this country as a business? How great things would be yeah? I saw that Trump opened the office of former president. Well, if Joe Biden can make up a fake office of the president-elect, then Donald Trump, I love that. that's.
Awesome. He's not going anywhere folks. He's, going to be quiet for a while, which is crazy for him, and he's going to re-emerge. I personally can't stand the guy, but a lot of his policies. I clearly support.
It was the messenger, not the message. Okay, Tom. Will you share your view of the out of the money call strategy used by the Gamestop traders and that whole cluster tom? Absolutely not. I will not spend one second on that at all.
It's not investing. It's not trading. It's gambling and we don't gamble here at Top Gun Options. Okay, tomorrow in accelerated retirement we do stuff that makes sense. If you want to run around with the Robinhooders, and you know, try and take out short squeezes and stuff like that it's just not what I do. I don't chase fads. I sit here and and do our work and we print money and that Gamestop fizz, you know AMC is just not not for me. You want to go buy some puts on it a month or two from now because it most likely implodes, knock yourself out, but I can't take up bandwidth on craziness.
It really is, if you want to gamble with those type of things, Tom find an amount of money that you have no problem putting on a table and lighting on fire and drinking champagne and watching it burn because that's potentially what could happen. I see people chase these fads and they get kicked in the teeth and it hurts them.
So you bet. I don't think you realize how funny you are. Okay, looks aren't everything. China overtakes the U.S. as world's leading destination for foreign direct investment. I got this wrong a couple of years ago.
I think it was 2015 as china's. Market went through the roof, I predicted they would overtake us as the world's, economic superpower. I think I said in two years, so I meant by 2017. I was wrong. I didn't think Donald Trump would do as much as he did with a trade war with China, so that kind of kicked him in the gut a little bit. Donald Trump gone, Joe Biden the big guy in with his crackhead son and China is going to zip past us in the fast lane.
So I got it wrong but now I'm going to be right. A broken clock is right twice a day. China will overtake us as the world's economic superpower. I'm gonna do the two-year thing again. I mean in the next two years you guys know I think they're taking back Taiwan. It's one China to Taiwan. A couple weeks ago, it took him long enough what's his name Pompeo came out and finally said, no Taiwan, you know independent.
We folks, we sell F-16s, M1 Abrams tanks. I think we sell them missile batteries. We sell them weapons. We armed Taiwan, it's about time. We call them their own country, so going out the door secretary Pompeo left a couple flaming bags of you know what on the doorstep of the office of president-elect Biden, like he designated China as a country committing genocide which they are. Enjoy your iPhone made by a Muslim kid for 10 cents a year, I love Apple.
I love Nike. I love Colin Kaepernick and I'm against depression. Some kid in China, in a concentration camp, made your shoes, but we don't like to talk about that do we or the media doesn't. I love to talk about it because I love pointing out people's hypocrisy! So here we are Starbucks, Microsoft, SMT, Texas Instruments.
I haven't followed Texas Instrument stocks since I had a Texas Instrument calculator in high school so I really don't care about that. I don't even know what it does. GE had some great earnings this morning up nearly 9.2 percent free market holy crap, Johnson & Johnson strong results. Raytheon was up, was it six percent, or maybe it was six bucks whatever? It was raytheon's on my white board of stuff to get to eventually write RTX down folks RTX.
We traded it for years. We got out of it but this is a back burner trade. What do I mean by that? We will need Raytheon technologies, yeah. It was up six percent. Now it's kind of given some of that back.
Why do Democrats do a fantastic job of getting us into wars? People forget about Obama and Clinton more or less getting us into a war in Libya. Hell we lost an F-15 in Libya, Karen, you could do a short-term tactical bear call spread on this thing.
I mean that's the wrong thing, RTX. I'd sell into this pop, but very good earnings out of Raytheon Technologies. It's United Technologies and Raytheon. They combined last year it's funny because Trump actually was kind of against that. So funny man, Trump wasn't, isn't a republican. He was a Dem. He was a limousine liberal for most of his life in New York realized there's no way in hell he could run for president as a Democrat and then signed up as a Republican .
I bring that up in the sense that when Raytheon and United Technologies talked about a merger last year or two years ago, he's like I wouldn't. I don't like that, which is not Republican. Republicans like big business and mergers like that and he really was kind of a blue collar. H was more Reaganesque, but you know more Trump the Democratic party left Donald Trump, who was it Roseann Barr too? I can't stand the woman, but she said the same thing like you guys left me.
I didn't go anywhere. I stayed right here and then you know here we are with socialism or whatever you want to call it but write this down, for potential new members or folks, even if you don't join.
This is a long-term bullish trade and it's sad. This is interesting breaking news you know, China invades Taiwan on the bottom third of the screen or a text alert and I guarantee your Raytheon's up 20.
These the defense stocks go up when shit goes bad, so there's a potential Paris trade. There's a free trade for you or trade idea based on what's going on in the world. These things were clearly under pressure for the past couple years, because Trumpwas doing what pulling us out of different places.
So write that one down good, good earnings, but I you know, I think it's going to fade. This is definitely we could talk about these tactics tomorrow Accelerated Retirement, but this is a definitely a long-term bullish trade that I will be taking a look at adding to my personal portfolio and our Accelerated-Retirement portfolio.
Uh Apple, Facebook on tap, Microsoft, obviously, but things are pretty good. So, in my mastermind group this morning I you know I reserve the right to be wrong. Like Steve said I'll admit often, when I'm wrong, but I might be wrong about a show February folks, the briefer this morning said you're right seasonality, usually February. You know we sell the news in the February and it's show we get back on our horse in March. You know again for all the new folks, how many of you show of hands there won't be one hand how many of you are allowed to trade off the left side of a chart.
How many of you? Nobody and technical analysis is based on the left side of the chart. We make money out here where in the white space we make money, projecting our thoughts forward in space and time, so we can influence trades instead of react to the market so.
Out of 19.7 February's, 17 were volatile. I don't care, Janet Yellen, Jerome Powell, the Fed the Democrats controlling all three branches that you need to project out here, not in the past.
So every once in a while. When I say February is usually a show, I need to couch that with this isn't a normal February, so the briefer this morning, a very smart lady was like hey man. Tech earnings are going to be such a blowout.
That is it's just and you can't short this market clearly look at all hedge funds that yeah the Gamestop and the whatever that idiot's, hedge fund, that was shorting. A lot of this stuff is getting blown out there's, hedge funds that are having to rescue other hedge funds, because the Gamestoppers are destroying everybody. Look how elevated, above this moving average, blue line is what's called a moving average. It's the 50-day moving average. It looks every one of these little dips here - has been a what a by the dip, whether it's, the Robinhooders and it could be, I mean they've never really seen a down market, right.
I briefed you on the guy the other day or two guys in the Wall Street Journal article that started trading when in November I don't trade puts I just trade calls okay. Well, that makes sense that makes that makes sense exactly.
The market only cares when it cares and right now the market doesn't care, but my job here at Top Gun Options is to teach you to work a radar that is looking further out than what I called the drool cup.
I'm staring here. I'm tactical. I'm trading Gamestop. I'm watching some dude on CNBC. You got to pick up your binoculars and look downrange North Korea, Iran, China, Russia, you think Vlad is just sitting there going.
America is imploding and I really don't care, man. I watched. I sat on the couch last night watching the AMC Hitler series. I'm like oh my God, cut paste into the future here . So anyway, you know the good thing about being an options trader is this. We can be in the blink of an eye. Did you see the market action yesterday? So in our investing clubs, the max afterburner club and our hunters group? What happened yesterday, man? This was at 10:30, 10:45, the market imploded and I told what my those two investment squadrons I said, buy this dip.
It's going to bounce off 3,800 and it did bounce off 3,800.. I did a bull put spread up here that if you had held it for the day you would have made 5,200 bucks on the way down. Right here I bought puts.
I bought the 3184, 3815 puts. Those made three grand and when the market turned I bought calls for Wednesday. I think those made about five grand. What I'm saying is as an options trader we could be johnny on the spot.
Let me give you a little bit of an insight into a trading firm, okay, the big beautiful firm I was at up in Chicago. You know I don't have this on my required watching slide, meaning you got to watch Billions, write that down or remember it.
You have got to watch Billions on Showtime, period, that's not a request that's an order. I want you to watch Billions. Why? Because in a big firm so this is you know our analysts. This was our analyst section.
This was the hedge fund. All the way in here these were the prop traders, Options House was in another building. The Options News Network was upstairs, but over here is a boardroom. It's on the second floor. Look at that. It had a railing around it, beautiful works of art all over the place.
Please watch Billions. Now I'm begging you, you have to if you want to know what's going on, you have to watch Billions. So why am I rambling about this? I'm rambling about this because yesterday, as this stuff started happening, the market imploded, I'm, like holy those are, those are some big sell orders. Buy some puts, buy, buy, buy 3,800. I'm like it's going to bounce off 3,800. I bought some calls. We could do that in the blink of an eye.
We're a single seat, fighter pilot. We are single seat traders in our investment squadrons. We kind of act in concert and that kind of is what exactly. So we at Top Gun Options have exactly what was going on in the middle here, but those are kind of individuals as a firm like if we want if the market really started imploding.
Yesterday, these dudes and ladies in the middle here kind of have enough authority up to a point. You have a book right. You have a book of a million bucks, five million bucks, 10 million bucks - a partner - might have had more than that.
That's kind of your limit, but if is the firm as a whole wants to get bearish you know we own 100,000 shares of Amazon, let's dump it. That's a pretty damn big decision. So what happens? You know all four or five senior traders up the stairs over here into the boardroom and then everybody's gone well.
I'm gonna stop by the kitchen first and get a cup of coffee, and I'll put my pad and paper down now I'm gonna hit the head and okay, let's get settled. Everybody goes around. What's going on man and if let's say we do as a investment committee.
It's funny that at the lunch time at the half, judge, Wapner calls it our investment committee today because guess what? If a big firm wanted to dump Amazon or all their Apple, guess, what happens? They can't do this? First of all, they can't they can, but it would be fatal, sell 100,000 shares of Amazon enter boom.
Now, first of all, it's probably going to get out that that', what they're thinking about doing and people start front running them. I could give an eight-hour lecture alone on what happens that's why I'm begging you to watch Billions because you'll see a lot of what happens and remember if somebody is trying to get out of something like that and it's that big now the thing really starts moving. Now they have to adjust their price so it's very hard for this is a super tanker doing 30 knots and they throw the rudder over or hard, over guess what's going to happen, it takes the state of Texas for a super tanker to turn. Okay and during that turn, they're, losing a pot of money.
That's another reason why in January and February I'm like get out of everything bullish get bearish we made millionaires because going down they're like oh geez, let's, meet and discuss this now. This is the bottom.
Actually, let's buy more idiots, holy, let's get out now we really can't get out, but let's, get on CNBC and tell everybody else to buy because we need the help. So long, Tangent and Divergent but I'm just giving you a little heads up into the reality of how this stuff works, right.
So my let me get back to my point here. My point being is the person who was briefing this morning like I said very smart lady everybody's kind of committed. I mean I'll know a lot of these one guy trades, a very big family office.
We'll transmit it immediately to my investment clubs. Hey man, somebody just yelled fire and let's get out of the theater okay. But until that happens all of these massive firms, these large family offices, that are long MAA, Microsoft, Apple and Amazon aren't bailing, yet okay, but they can.
That's what happened yesterday. Apparently it was a large family office who dumped a bunch of SPX and caused kind of a little bit of a panic like if that dude firm is getting out the Greenwich firm, then is this a big one? This will happen again in the future and it will be the one where all the other firms start bailing too.
I will tell you even though if you watch Billions, you can see that some owners of these firms hate each other. They don't necessarily hate each other, but they're in a mine's bigger than yours race.
I saw it all the time, man they kind of respect each other, but it is a little Gordon Gekko-ish, but at a certain point they do maybe pick up the phone and go hey man. Maybe we let's jump together, or this happens all the time man they go to Gibson's in Chicago or The Vault.
The name of the Vault restaurant is in New York and let's come up with a tactic, but we as a little remora fish swimming under a shark. We can if you if you were in our investment clubs yesterday, you saw us executing pretty damn well.
Yesterday was fantastic, fun , but if you can't because I don't like doing that folks, I didn't. Like a matter of fact right around here, I got out of the bull put spread. It took a little bit of a loss, because what did I do? I'm like I'm done. I've been sitting here for too long. I'm going to the gym I don't sit here in day trade. So if you don't want to sit here and day trade which I don't do or want to do.
You can kind of go, well guess what and we're good. This is more for tomorrow not for today I have other stuff talked about today. You can get some trades on out to February that kind of protect you. If you don't want to be Johnny on the spot and I don't.
Maybe I'm flying out to go skiing for a couple weeks of Colorado. I don't want to be sitting on the ski lift looking at my phone all day, I'm going to have stuff on in case, you know I'm feeling it folks.
This is again what am I feeling I'm feeling, 30 years of experience and based on everything I just rambled through it, doesn't matter. What that 30 years of experience is doing, I got to go put my mind forward. Okay, all right, so nice little tangent right there. All right, let me look so last week in the primary brief, where are we primary life trade brief? Yeah, you know the SPX were, it was a monster run into the close? Well, let's just take a look at it. I mean look at that market action. Yesterday, implosion there's the elevator or the window down and literally an escalator up and then a smack into the close that was a short squeeze into the close, because a lot of folks were thinking now we're gonna fill this gap yesterday and we did . You know what FXI, our FXI trades are actually in the primary portfolio, so we are going to talk about these, sweet. I don't think it's over in this one though now it's over in this one, okay! Well, let's, talk through FXI so if you're new for all the new folks FXI, you got to write this one down, SID, a short squeeze.
Essentially when you're short, this will be a quick. We can talk about this in a full throttle training. Here's your quick definition, people who are short firms who are short, go to a broker and say I want to short this stock or this index or this ETF.
The broker goes and borrows shares. Sometimes they might even take yours and you don't, know about it. Deeper discussion, just know this. The people who short something say hey, I'm, going to replace those shares when they do at a lower price, so somebody who is short thinks something is going to go down. Okay. So, yesterday there was a bunch of folks as the market just kind of hovered who thought SPX was going to come back down into the close like just get pounded.
So they were short, the SEC. If you're short, the second, the position starts going against you, the stock, the ETF or the index starts going up. You're losing money pretty damn quickly. How do you get out of a short you actually have to buy it's? Almost counter intuitive, you're betting, something's, going to go down and yep it doesn't.
It starts going up oh to get out of a short position you have to buy whatever it is in this case the SPX so it creates what's called a short squeeze like that, all the shorts that are panicking like holy crap.
We got to get out have to buy whatever it is, which makes it go up even more that's why you have to be insane to short. anything. Do not do it. When I use the term short in options trading, I mean bearish.
I need to do a better job of that. So, if I say hey, I'm I'm short SPX for today that doesn't mean I'm short. Like I'm buying or you know, selling shares short. It means I'm doing a bearish trade okay.
So there's a difference between short trading and just being bearish in options. Does that make sense? Okay, now I get it thanks for the awesome explanation knew what short and bearish was but yeah exactly I needed to clean that up so today, looking at SPX I'd probably, maybe look at a bear call spread, which means I'm bearish right but short, you know somebody who who's short is borrowing shares, saying I'm going to put them back when the thing's lower and then if it doesn't go lower and goes up holy they got to buy to get out. That's why it's called a squeeze and it looks like this so that's what happened?
I don't want to really talk about it, but with the Gamestop stuff, this one hedge fund, again the smart money, these little punk ass hedge fund managers. I'm brilliant, this what's his name Bill Ackman from CNBC. You know hell's coming at the covid crisis, but Bill Ackman was shorting. What was it called, Herbal Life? It's. A ponzi!
I love these type of investors, or these dudes or like Carl Icahn, Carl Icahn can get on CNBC and go. I love Apple. It's fantastic, even though an hour ago he bought 50 million dollars of Apple. He gets on CNBC and says I love Apple. Apple goes up three bucks and the guy just printed money.
Is that illegal, no same thing with Bill Ackman. He looked at Herbal Life and called it a Ponzi scheme. The salesman get paid this and he was trying to pound Herbalife into the dirt, but this time he ended up getting pounded into the dirt.
But here's what's funny is I have to say it again you have got to watch Billions start watching it tonight because guess what happens? Everybody if I ran a super massive huge billion dollar firm. and I'm sitting here like Bill Ackman is short Herbalife, I can't stand Bill Ackman hey trading desk, give me a billion dollars of herbal life and then all of a sudden I'm, squeezing Bill Ackman. He loses money and I put him out of business. This happens. Why do you think I say trading is a form of combat? I've seen it.
Maybe I've been a part of it. No comment, right. Does that make sense? All right, let's get back on track here because I got a busy day. So we are long FXI in the primary live trade brief model portfolio. FXI folks is the iShares large cap China.
I used to love Trump when he'd say China, China, China ETF. Okay, I hate saying this. I explained the other night how I wear two suits. I wear a flight suit at Top Gun Options. I think China's awful. They are committing genocide, they steal everything, they don't, innovate. For a quick option story here's how sleazy China is and if they're listening, I didn't say any of that. I salute our new overlords, China and Xi Jinping our dear leader.
Now let's get back on track ! I forget how long ago it was but Heinz cat. You all know, Heinz Heinz Ketch right. Senator John Kerry, married rich with Teresa Heinz, John Kerry who would instead of parking his big yacht, his sailboat. Where did he park it a mile down from his port in Massachusetts in Rhode Island? So he didn't have to pay Massachusetts tax. Love the Democrats. Love the Democrats and then the media broke that story.
He's like okay I'll sail it back down here, taxes for thee, but not for me, back on track, Heinz ketchup, Warren Buffett and 3G capital five years ago. I forget when this was but guess what two days before Heinz ketchup was acquired by 3G capital and Warren Buffett and the options vote on Heinz, call and put options.
I think was one contract traded every other leap year? I'm not joking. I mean they hardly ever traded. Two days before the announcement of the merger, 80,000 out of the money calls were bought. That's breaking news, Warren Buffet, 3G capital buying Heinz ketchup. The stock went straight up. I forget how somebody Googled this story. I forget, but I lived it. I forget how much those calls made . You know it was insane, but I mean if you didn't think that the SEC or somebody's gonna go what, but you could be forgiven for that, because if you looked at the Bernie Madoff thing guess I was in the Chicago Board Options Exchange when Bernie Madoff would send out monthly trade confirmations of his trades, just Bernie Madoff trades for a day was like more than the SIBO for a month there.
I forget the name of the guy who like put all this stuff together and send it to the SEC like every week like this guy's saying just him traded more contracts than this entire SIBO. That day does not compute well, maybe because bernie Madoff's daughter married a heavy at the SEC.
What a disgrace, the guy should have been given a medal. I think the government actually paid him eventually, but the guy, the whistle blower for Bernie Madoff it literally, the guy's like faking invoices like or whatever trade confirmations.
Like hey man, we traded this many on this day the SIBO traded. This many there's your government. Back to Heinz ketchup, so 80,000 calls the SEC looks into it and they're like it's a Goldman Sachs account.
Shocker, Goldman Sachs is like they do some digging and look, it was very hard to track. It ended up being an account in Switzerland, yeah. It sounds like our last election. It was dominion, dominion, brokerage firm, they tracked it this account and then all of a sudden it disappeared.
I got a couple buddies who know for a fact who it was. It was the 12th floor of the People's Liberation, their Pentagon. They are making money but they're hacked in they were hacked into Goldman Sachs or hacked into JP Morgan years ago.
I think two or three years ago I remember Jamie. I remember the Wall Street CEOs going don't go to Washington, begging for them to look into our business. That's the exact opposite, but based on the hacking, the Chinese army, the North Koreans, they're all hacked in to hey, I'm very happy that our this deal is going to close tomorrow, but if you could hack into there would you do it and fear a foreign country yeah? You would I got onto this tangent folks because of this you got to be bullish on that.
That's wrong Whiz. You want a friend buy a dog, you want to make money here. So look at the chart of FXI, so we are a long, long long term bullish on FXI. We did how long ago was that. I think we did it in both, but once you become a member new FXI I'll show you how to.
Maybe we'll do that for our training tomorrow night that'll, be our our training because here's what's good about being long-term bullish on FXI? When, not if this, happens do you think China cares? No. As a matter of fact, for a couple years there I was trading the hell out of EWZ, which is Brazil and FXI that was kind of our international flavor.
Okay, I got my white board and I got my daily kind of go look around ball scenario down in Brazil. They call him the Trump of the tropics, EW. You know there's the covid crash, he kind of did it. He kind of did it Trump, it's fake it's whatever go back to work, so not doing as good as FXI and Brazil was also going to be good, because what the trade war with the United States, Xi Jinping's like hey, Donald, no offense why am I going to go Buy a soybean from you for a dollar when Bolsonaro in Brazil is like, I'll, do it for a nickel. Remember that morning, God remember this, Trump woke up somewhere back in here and said hit the ball center right in the face with a trade war in Baltimore at a press conference. Somebody asked him like hey. Do you know this just happened? He's like Trump's, my buddy, that's fake news.
I'll call. Well, he called and yeah Trump's, like you even think about doing business with China and we got our own trade war, David, your FXI, EWZ, and February's. S&P 500 puts were some of my trades of the year.
That's why the month this month we did like 2.1 million dollars in profitable trades that I covered in live trade briefs. Back to FXI I think tomorrow night I'll do that in our full throttle train? I'm going to show you how you have to be long-term bullish on china.
It's that they're they're passing us. We're sitting in the left lane down here. In God's, waiting room in Boca can't even see the steering wheel with our blue hair and our blinker on and there goes China in my 911 right past us. I guarantee you now the FXI won't be completely completely immune to our pullbacks. I mean this run, let's overlay the S&P 500 with them, SPX. So look at this work, the green line is our S&P 500, and this is China. Kind of under performed that so it doesn't really super follow our S&P 500.
What's? Our last trade we did on SVX? I think we were doing bear call spreads. Weren't we. Go back one because I'm feeling a bear call spread on FXI, hello FXI short calls and bear call spread.
Oh yeah, it's a good point Steve. The other reason you must be bullish. I didn't say maybe. I said must. These four letters, The People's Bank of China? This is their Fed. The PBOC makes our Fed look like it's doing nothing when they went through their 2000 and not when they went through their financial crisis.
Right here. Look at this. This was insane look at their markets, holy crap. Oh we're all gonna die holy crap. Oh we're all gonna die when they had their kind of their financial crisis on the way down.
You know what they did. They banned short selling. They arrested 200 journalists who were writing bearish financial articles. They said you could only buy stocks, they ordered all of their pension funds and large companies to rebuy their shares and then they did everything that in America well, we might get there.
But you'd, be like oh my God, so their brand of capitalism is really interesting, but this is you know this is for all of these. There's this and then for all of these, we're kind of up here.
So I'd be a little short-term, bearish on FXI. To be honest with you, good point, we're back in the Paris accord and China is not , but the the PBOC the People's Bank of China. I'm not joking. If Jerome Powell can sit on a 60 minutes interview and go I just make money, I just hit enter and sometimes I mail it to federal reserve banks. China can do even more when they throw people, when you can, you know when you can force capitalism at the end of a bayonet, it's...