December 11, 2019: Boost Your Profits in All Markets With Great Growth Stocks and Covered Calls

Jacob Mintz, Chief Analyst of Cabot Options Trader, Cabot Options Trader Pro, and newly launched Cabot Profit Booster, and Chris Preston, Chief Analyst of Cabot Wealth Daily reviewed:

1) How to optimize profits from great growth stocks
2) What a covered call is and how to use this simple, conservative technique for easy yield
3) A few trades with excellent potential in the current market

The webinar was recorded December 11, 2019

You can find the slides here.

Webinar Transcript:

[00:00:04] Hello and welcome to today’s Cabot Wealth Webinar: Boost Your Profits in all Markets with Great Growth Stocks and Covered Calls. I’m your host, Chris Preston, chief analyst of the Cabot Wealth Daily Advisory and managing editor here at Cabot Wealth Network. With me today is Jacob Mintz, chief analyst of our Cabot Options Trader and Cabot Options Trader Pro Advisories, as well as our newest advisory, Cabot Profit Booster. Today, Jacob is here to talk about the strategy behind this new advisory, including how to squeeze even more profits from great growth stocks. What a covered call is and how to execute this conservative yield boosting options trading technique. We’ll also give you a few actionable covered call trade ideas using stocks selected by our resident growth investing expert, Mike Cintolo. This is an interactive webinar, which means we’ll be fielding your questions after Jacob’s presentation wraps up. So if you have a question, feel free to ask it at anytime. We’ll try to get to as many of them as time allows once Jacob wraps up. Just keep in mind that we cannot offer advice in regards to your own personal investing situation or portfolio. First, let me introduce Jacob prior to arriving at Cabot. Jacob was a market maker on the floor of the famed Chicago Board Options Exchange, where he ran several trading crowds for nearly a decade. He then moved on to a top tier options trading company where he ran a trading desk that traded against some of the most sophisticated hedge funds and institutions in the world. Today, Jacob trades for himself, coaches and teaches about options trading and runs Cabot Options Trader and Cabot Options Trader Pro and Cabot Profit Booster Advisories and that mentioned before. Long story short, Jacob knows what he’s talking about when it comes to options trading. So I’ll let him do just that. Jacob, take it away.

[00:01:49] Thank you, Chris, and welcome, everybody, to Cabot Wealth Network’s webinar on how to Boost Your Profits in all Markets with Great Growth Stocks and Covered Calls. I’m Jacob Mintz chief analyst of our Cabot Options Trader and Cabot Options Trader Pro Advisories, as well as our newest advisory, Cabot Profit Booster. As Chris mentioned, if you have any questions at all. Please submit them as the chat feature teaching about options and options. Freeing is truly one of my passions. So if there’s anything that I’m saying during this presentation, please send in your questions. If you don’t understand what I’m talking about. So let’s get started. As we all know, it’s a pretty strong bull market. The S&P 500 is approximately 1 percent from all time highs. So we talk about a couple of strategies to make money in a bull market. And those strategies are how to buy calls and how to execute, buy rights and covered calls. First, a little bit about me. I graduate from University of Ohio in 1999. I was doing interviews in Chicago at the high jobs of the time. Those were consulting jobs, Andersen Consulting, PricewaterhouseCoopers. When my uncle saw that I really wasn’t into those type of jobs and those job interviews me. He let me know that he had a neighbor who was making a lot of money on the Chicago Board Options Exchange, CBOE. He introduced me to that trader and I got the job. And for the next year I worked with that trader, trading floor legend, and just learned about what a call is. What to put is, what a buy right is moved on to more advanced strategies. Eventually they put me on a trading badge, which meant I was a market maker myself. What does that really mean to be a market maker? Every day I would go down in the trading crowd and join the other guys in that trading crowd. Making mark was my job to provide liquidity to you. The individual investor. So how does that really work? Well, if you want to buy Facebook, call that you call your broker at Morgan Stanley and say, I want to buy the Facebook. January 20 calls you. That broker will come into our trading crowd and say, where I buy the Facebook January 200 calls. Well, it was then my job to provide that liquidity. I would look at my theoretical as I would say that options were to doubt it because it’s worth two dollars. I’m willing to buy it for a dollar or five. I’m willing to sell it for two twenty five. Essentially, I have twenty five cents of edge twenty four point five dollars edge. If I bought it or if I sold it well. So I would say dollars 25 five bid at two twenty five. The broker would then call you back up and say you could buy over to twenty five. You say five to twenty five and you would come in the crowd and say we’ll buy them four to twenty five. I would say sold, sold, sold. And that’s how the transaction would happen. Now that’s the type of order that was our bread and butter just trading one lot to last five 10 contracts at a time where things get a little bit dicier is when a Goldman Sachs broker would come in the crowd looking to bash me over the head with his order. These were guys who were representing the smartest hedge funds institutions in the world, and they weren’t looking to buy five or 10 options. They’re looking buy a thousand five out ten thousand options with millions of millions of dollars. Inevitably, what would happen when they bought all those calls for me, when I’m selling these calls to the smartest hedge fund institutions? Inevitably, there would be a takeover rumor. Some point is having me over and over again. I became smart enough to realize it was time to start following the smart money. These people weren’t risking 10, 20, 30 million dollars based on. Wild guess they were looking to put on these trains because they had insider information. So it became my job to follow into those type of trades. Now, who trades options? The best of the best. Warren Buffett has been known to trade often. Carl Icahn been known to trade options. George Soros, David Tepper. These are the people who are trading these big option contracts. And who will we follow into a cabin after trader?

[00:05:50] So when we’re in a bull market and I see big call buying, I want to also buy calls.

[00:05:58] Now, even though people have a screaming, the end is near for quite some time. The bull is still in charge. And so what we do account is trader is by calls along with the gentleman. So we’re going to get into how to buy a call option in number first, given that definition, and then from there I’m going to break down what that definition actually means. So a call option gives us Holder the right to buy 100 shares of stock at the strike price at a time, prioritize options expiration date. That’s just the definition. We’re going to break down what that actually means. Each one equity option contract represents 100 shares of the underlying stock. That’s a critical, critical component of this whole thing. If you buy one option contract that gives you the right to buy a hundred shares of that underlying stock. It’s a multiplier one if you buy two calls. That gives you the right to buy two hundred shares of the underlying stock. The next important opponent is the potential loss for the holder of an option is limited. The initial premium pay for that contract. So the most you could possibly lose when you buy a call is the premium paid. So if I buy a call for two dollars or two hundred dollars, at most I can possibly lose. Is that two hundred dollars? While there are some misconceptions of them in the market that options are risky. In fact is they are a great way to get exposure to stocks and define risk and make sure you know exactly what I mean by that. But first, let’s talk about which collapsing should you buy? Let’s say you like Facebook and you are ready to log into your brokerage platform and buy a call. There’s a lot of. Called the strike prices and expirations, let me show you which ones I would recommend. Now, first off, a bit of three. We’re trying to play the right. We’re not like this gentleman who gave a tip that the best way to increase your chance of winning the lottery is the buy of me tickets as you go for. That’s not the way we do it. We’re putting on smart. That’s where the odds are in our favor. So, for example, if Facebook is trading at one ninety nine two hundred dollars approximately, I would recommend buying calls near the current tax break. So saturated two. I would recommend buying the two hundred right call for the two or five strike all. That is why. Why don’t you begin? It’s likely that Facebook can trade well above two hundred to a five. However, I don’t recommend buying calls that are very far away from the current tax race like the Facebook 250 calls because it’s less likely that Facebook will get the 250. For that reason, I recommend buying calls near the car factory.

[00:08:33] Next opponent of choosing an option is time. Time is critical when choosing an option to buy.

[00:08:40] If Facebook is trading at two hundred, I don’t recommend buying calls that expire this week or next week. Why? Because a tweet, a trade war headline, the Federal Reserve speech could move the market a lot in the very short term. And even though there are call after they expire this week and next week, it’s just really hard to kind of mark on that type of short term horizon. However, I recommend buying calls with three to nine months until their expiration. Why? Because that’s true. That tweet that could send the market down half a percent or 1 percent could ruin a call by that is targeting moved next week. But if you give the market and the staff three to nine months to make that move that you’re expecting, there’s a greater likelihood of success. So let’s take a look at example using those printers. Take a look at Walt Disney stock recently exploded on the release of its Disney plus subscriber numbers. And so if we want to put on a bullish trade and Disney and if there was a big hedge fund institutional call buying, I might look to do the following trade. I might look to buy the Disney April 1 50 call for seven dollars. So why am I choosing the April 150 call? Well, like I talked about earlier. I’m looking to buy a call with somewhere between 3 and 9 months until its expiration. In this case, if I bought these Disney April 150 calls, it’s giving me approximately four to five months of time before these calls expire. The strike price is 150 now. When I put together this slide, I’m sorry. Disney was trading about one forty seven and a half. So, again, I’m buying calls that are pretty close. The current stock price. And that’s why I chose the April 150 call. Now, the price is the next important component when we buy an option for seven dollars. That’s actually seven hundred dollars because it’s a multiplier of a hundred. So if we buy that call for seven hours or seven hundred hours, the most we can possibly lose on this trade is that 700 hours. The risk in buying these calls like that, just that potential loss for the holder of an option is limited to the initial premium paid for the contract. So in this case, the most we could possibly lose is that some of her dollars per call purchase. So let’s take a look at the profit and loss graph of this trade again. We bought the Disney April 150 call for seven dollars. If Disney were to fall on earnings or if these original Disney plus numbers started to slide and the fact drops to one thirty one thirty five, the most we can possibly lose is seven hundred hours. However, to the upside, we have unlimited upside exposure. So if these Disney plus numbers can do to really grow and the fact is taking off, if we buy that April 150 call and the factory 180, we have the right to exercise, the right to buy Disney at 150.

[00:11:29] Power of offering to pay fourteen thousand seven hundred dollars to buy 100 shares of Disney, you can pay seven hundred dollars for the opportunity to buy a hard shares at one fifty. That’s really the power of office. We’re paying seven hundred dollars have having exposure to Disney. If you had to pay fourteen thousand five hundred dollars to buy her shares. And you can say it’s been a great little run for characters. In 2018 when the market was essentially unchanged. We absolutely killed it. And we did this simply by following the big hedge fund and institutional traders into their positions.

[00:12:04] So why else would you buy calls?

[00:12:07] A good use of calls is ahead of earnings because there’s a lot there’s a big event risk. If a company reports earnings and the stock falls dramatically, you could potentially have a big loss. But with call options, you can mitigate that risk and by having less money at risk. So let’s take a look at Oracle, which will report earnings tomorrow night. Doc ran up into about 57 recently, but then started to sell off in the last couple days. So with Oracle reporting earnings tomorrow and with the factoring rate at fifty five, we might look to buy the Oracle January 50 calls for a dollar 50. Now, I do want to say I’m not necessarily recommending this trade, but just a perfect example of why options are powerful. So again, the factoring rate at 55. So I would buy the fifty five straight call. Davis calls expiration is January 17th, two thousand twenty strike prices fifty five. And the price we’re paying is a dollar fifty, which is actually one hundred fifty dollars because the multiplier one hundred. So when you are executing a straight the most you could possibly lose is that hundred fifty dollars. Here’s the profit loss graph of that trade. If Oracle were to fall dramatically on earnings, let’s say two forty five dollars, the most you would possibly lose is that hundred fifty dollars. However, to the upside we have unlimited upside exposure. So somehow Oracle jumped to sixty three dollars tomorrow. We would have the right to buy the stock at fifty five.

[00:13:32] Power of. It’s really a leverage game of paying five thousand four fifty dollars to buy 100 shares of Oracle. You could pay one hundred fifty dollars for the opportunity to buy a hundred shares at five. This is a risk defined trade that will take out a lot of that risk that we know that can come during earnings season.

[00:13:54] Now we’re talking about Cabot prosecution, which is our newly launched practice yesterday.

[00:13:59] As many people know, the Federal Reserve and central bankers across the globe driven interest rates to near zero percent, didn’t create a real problem for traders and investors looking to create yield in their portfolio. This is a problem.

[00:14:12] However, a caveat, we’ve come up with a solution. We’re going to combine the stock picks, a Meissen Tolo chief analysts have a top 10 trader with Mike Covered call ideas to make money freeways. First, a little bit about Mike. Mike is someone who eats, sleeps and dreams about doctors, and when he does a top 10 trader, he recommends 10 stocks have the best charts, numbers and stories every Monday evening. Mike’s recommendations can make money two ways for subscribers, and these stocks can rise in value as well as some of the stocks he recommends. Pay dividends. And the third way cannot profit. Who’s your subscribers can profit? To then add one of my covered Paul ideas, which I learned about as a former market maker on the floor of the CBOE. We’re going to recommend those covered calls on mike stock tactics.

[00:15:01] So what is a covered call? First, we to give a definition. A company called consists of buying or owning a stock and selling a call option on that stock.

[00:15:11] You could sell one call of each hundred shares of stock you own. So if you own five hundred shares, you could sell five. Now, when we’re talking about Disney earlier, we’re talking about paying a seven hundred dollar cranium when you sell a call. You actually collect a premium. So if we were to sell that Disney call, we would collect that 7 or dollar crate and that would instantly come into our account. So he said one call for one dollar. That’s actually one hundred. Again, it’s a multiplier a lot. So one call for two dollars, you actually collect two hundred dollars.

[00:15:44] Why is this such a popular strategy? There’s a great way to create yield against stocks you already own. Also, there’s a very, very conservative strategy.

[00:15:53] Selling calls doesn’t increase your risk. In fact, it reduces your cost basis on a physician. Why would you not cover calls if they do limit your upside? You wouldn’t want to sell a call on a stock. We think the stock will go up dramatically and want to participate in the facts, right? Let’s take a look at a covered call executed on some conductors stumble LSCC, which is a stock that Mike recently recommended to his top 10 subscribers. LSCC seat is now Mike’s Technical Analysis LSCC has coming out party in February of this year. This I see the gap from new multi-year highs eventually pushing to 50 in early May. Stock then rested for a couple of months, but reached new highs in July and the gap to new highs after the Q2 report late last month. Impressively, it held firm since suggested lost them at 15 and a half sixteen point two.

[00:16:42] So what did I do after I saw that top 10? Right. I bought a LSCC covered call. What we do. We bought stock at nineteen thirty eight and we sold the September twenty call for sixty four.

[00:16:55] Now remember when I sell that call for 64 cents. That’s 64 cents is actually sixty four dollars. It’s a multiplier of a hundred sixty four dollars comes right into my account now. Also on this slide is my static return and covered call return which we’re gonna break down in this slide to go.

[00:17:13] Now let’s break down the various areas of the story.

[00:17:16] I bought stock in 1938 and I sold the call for 64 cents, which reduces my break even on this stock purchase to seventy four. Remember this a very conservative strategy that reduces my break even on my stock position. So this case, LSCC could fall as low as 18, 74. I wouldn’t lose my.

[00:17:35] Now, let’s move on to the scenario I refer to as static return if LSCC doesn’t move for the next month. S September 20 call that I sold would expire worthless and I would collect that 60 for about.

[00:17:47] That’s a yield of three point four, one percent in one month’s time. We’ve created a yield essentially against a stock that hasn’t moved. Now let’s talk about the best case scenario, the best case scenario for the straight is if LSCC rises 19.99, just under the September 20 strike vessel. In this scenario, I get to keep the stock holding as well as the stock gains as a stock rose from 19.38 to 19.99, as well as the call bringing, I create a yield of six point six seven percent in one month’s time.

[00:18:21] Worst case scenario for a covered call is where the stock drops dramatically. In this scenario, I would lose money on the stock holding, much like if I owned any stock. However, because I click on a call premium, my losses aren’t so bad as I lowered my cost base. Remember, this is a very conservative strategy that actually reduces your risk.

[00:18:44] The Nixon area was where referred to as covered call return if assigned. In this scenario, LSCC rises above 20 on September expiration. This were to happen. The trader who bought the call for me would exercise his right to buy the stock for me and I would not participate in significant upside. Should the stock rise dramatically? However, I would have made two hours in the stock rise as well as sixty four dollars from the call sale and net net, I would have a profit of six point seventy two percent in one month’s time.

[00:19:11] This would be a great scenario.

[00:19:15] So how did the trade work out for me? The September 20 call I sold expired worthless and I created a yield of three point four one percent in September. Then in October, I sold the October 20 call a sense to create a yield of three point two percent. While yield of 3 percent in one month’s time doesn’t sound like a homerun in the zero interest rate environment, I find great yield of 3 percent to even as high as 15 percent every single month. These trades do turn into a home run over the course of time. So what do you get, a cab, a profit loser every Monday morning likely releases top ten stock ideas, then Jacob will find the staff from that list that has the best cover all potential and send you my trade idea Tuesday morning shortly after the market opens. The idea that we’ll we’ll include a portion of Mike’s analysis, as well as this full technical analysis chart and his staff, which we will be tied to. We will use Mike staff as our staff. Then I will break down my trade idea along with the break even, which we discussed earlier, as well as the potential outcomes. And lastly, I will include a breakdown of our current open positions. And most importantly, if you’re new to options or covered calls, you and you have any questions all at all about the trade idea are open positions or if you’re new to options, want to discuss with me how to execute a covered call. You may ask this to my personal email.

[00:20:41] Welcome. And now my turn back over to Chris.

[00:20:45] Thanks, Jacob. Jacob, a minute to catch his breath before we start before he starts answering some of your questions. And by the way, if you’ve not seen questions yet, now is the time to do it. But first, let me tell you how you can sign up for Cabot profits. Cabot profit booster for those who are intrigued by that. We have a special offer, a reserve as Sicily for listeners of today’s webinar. It’s half the normal price with a money back guarantee for your first 30 days. And when you subscribe, as Jakob mentioned, what you get are Jacob’s weekly Cabot profit booster recommendations featuring stocks with high momentum that were recommended the day before by Mike’s until low in his Cabot Top 10 Trader Growth Stock Advisory. You also get regular updates, real time trade alerts, access to all of Jacob’s pass recommendations and direct e-mail access to Jacob. Sign up me now by clicking the link. That’s on the screen now. Cabot Wealth dot com slash CPB special. You’ll also for those who are tuning in today, you’ll also receive an email in your inbox tomorrow with the offer. You just click on that and sign up for it. And again, it’s half the normal price with a 30 day money back guarantee. Now, let’s get on to your questions.

[00:22:13] Let’s see the first one. Jacob, is the intent of kept private profit booster to collect option premium while price is accumulating once it breaks out, thus capping profit by having sold the option.

[00:22:33] Can you help me understand your rationale for what you’re trying to achieve?

[00:22:39] Sure. So this is the point. OK. Rocket booster is to really to make. Like we said, make money through ways. We’re hoping that the stock goes higher as well as there will be some dividends that we collect along the way, depending on the stock picks as well as the car recall return. So if we could I mean, if we can create a yield of 10 percent to 10 percent in one month’s time. That is a homerun.

[00:23:03] If you do enough of these, then we’re going to release 50 trade ideas a year. Now, when we miss out potentially on some 30 percent winners and 40 percent winners. Yes. If we’re in a wild bull market, then we will be disappointed. And I’m doing air quotes. Disappointed only making 10 or 15 percent on a trade epic said if we’re in a choppy market or a down market or a market, that’s just kind of grinding slowly higher. This is a strategy that will work out big over the course of a year. In fact, there’s been countless studies that and some that I’ve written about recently where over less 16 or 18 years, the buy rate strategy by buying the S&P 500 and selling calls out of the money have greatly beaten the S&P 500. So it’s just a way to make this. I will do. I’ll say it’s a safe strategy on growth stocks and a way to safely create yields of 3 to 15 percent on these stocks.

[00:24:04] Jacob, there’s another question asking for clarification on what the difference between a covered call and a buy right is.

[00:24:14] So it’s actually a great question. They are essentially the exact same thing. It’s it’s they are the same thing. It’s essentially like I would say I would say the word chowder and somebody else was they chowder. They’re the exact same thing. Just said differently.

[00:24:34] OK, let’s see here.

[00:24:39] Jacob, you showed your strong performance from 2018 when things were the market was even volatile. Does volatility actually help you?

[00:24:53] So, yes. In general, I I’m somebody who thrives on volatility. If the stock if the market is getting shook up and if stocks are falling hard, that presents a lot of opportunities for me, especially now that works for me for buying calls for sure way. You know what? I’ve been waiting to buy a stock and the stock drops dramatically. That obviously opens up the opportunity to buy a call option cheap. Also, in terms of volatility, the higher the volatility in the market, the more expensive an option is, which actually makes selling covered calls against stocks even more profitable because an option. You know, in a low vol volatility environment might cost a dollar. But in a high volatility environment, that option may be. Now we’re down to 50 or two dollars. So we’re actually selling more expensive options. So, yes, I mean, that is my dream scenario. You know, the initial if if the market drops 5 percent, 10 percent, you know, out of nowhere, that initial move might be slightly painful, but it really, really opens opportunities for big profit potential going forward.

[00:26:01] OK. So here’s the question. Sort of a logistical question. Jacob, how will you choose which of Mike stocks to recommend the following day?

[00:26:16] That’s a good question. So we just released our first stock of profit boost your stock idea yesterday, and I looked at Mike’s list and what I was really looking for was, number one, liquidity.

[00:26:28] I need to make sure that the subscribers can get into these traits. So let’s start there. That’s an important component. That’s important is just the premiums that we can achieve. So I recommended a trade yesterday, a cover call in Splunk Fields, because Splunk is a somewhat volatile stock that Amy gave me and saw the potential to have a return of approximately 6 percent if the stock didn’t move. So the static return that I was referring to earlier as high as nearly 10 percent. If the stock went up several dollars, it makes a bullish thesis played out. So those are really the liquidity is an important component. I’m also gonna try to keep the portfolio relatively balanced. I’m not going to push nine straight semiconductor stocks. Let’s say there might be a semiconductor stock one day. The next week it would be a biotech stock company in the next financial. That’s not my entire focus, but it is one component of columnists like this stuff. That’s a good question.

[00:27:28] OK, here’s a question from Elizabeth. Can you discuss your strategy for buying back the calls? Will you hold them until they expire, almost worthless? Or you? Will you buy them back for, say, 50 percent and then sell new calls?

[00:27:45] That’s a good question. So I don’t have necessarily a defined rule on this. The one of the most important components of this will be the state of the market.

[00:27:55] If we’re kind of in the ideal volatility selling environment, then I might look the I might be looking to handle that trade one way. If we’re in a environment where the market is falling apart, I might manage the portfolio again. It’s really I am. Other than the stock which we are tied to, Mike, I kind of have a little latitude to be able to manage this the best way possible. And like I say, it just depend on how a stock is performing. How is how the market is performing? How much premium is left in the trade? You know, if we sell an option for a dollar like she said, that that option is that we’re 50 cents. It just depends on how much time is left until expiration. The stock looks its relative performance as well as the overall market’s performance.

[00:28:45] Again, another good question.

[00:28:46] Yeah. See, here’s one. Jacob, you went on the one from Jerome. Do you look for a percentage return when to sell the option?

[00:29:02] Well, I mean, I’m not going to be honest. I’m not going to waste our time and cell phone calls that return us return 1 percent or 2 percent. I mean, look, even if you make one or 2 percent on each trade each month, that’s a great year. But that’s not what we’re here to do. We’re looking to create yields of at a minimum 3 percent, 4 percent. That would be the lowest percent yield. I’m looking to create it’ll probably be I’m probably more looking for stocks and trades that could create yields of between 5 and 15 percent.

[00:29:31] That’ll be the goal. But that being said, I’m not going to necessarily just force a trade on because it has a high yield potential. I don’t want to lose money chasing these baby yields.

[00:29:45] OK, good to know. Let’s see. Jacob, you mentioned rotating between sectors. Is there a particular sector or sectors where your recommendations usually come from?

[00:29:59] Well, these are all gonna to come from my expects I cabin options trader, we execute some covered call ideas, probably about 5 10 a year. Those are based on the unusual call activity that I talked about earlier. So if I see a lot of call buying in recent, I saw a lot of call buying in Jet Blue.

[00:30:18] Per capita interest rates that drove the price of those options up very aggressively and we executed a covered call on it. But that is strictly to cover Cabot administrator, a profit booster. Those ideas. These ideas will come exclusively from Mike. So as we know, Mike moves in and out of sectors. You know, he’s going where the smart money is going. So if he sees a lot of stock shrink in financials, well, then he’s probably recommend more financials. And I will also notice that trend and go along with my expects. These account profit booster, all the stock ideas are Mike’s.

[00:31:00] OK. Here’s an interesting somewhat unrelated well, a related question. Jacob.

[00:31:09] What’s your best story from being a market maker at the CBOE?

[00:31:18] Well, I told this story a couple times at the Cabot Wealth Summit. So many years ago, when I was a market maker on the CBOE, it was the summertime and there weren’t a lot of guys in the trading crowd and a broker when these big brokers came in and I turned around and was asking us what the market was on some Google books.

[00:31:41] We gave the market and he said, sold. So we bought. So there’s only a couple of us from the train crowd. It’s the normal train crowd at 50 guys in there is this time there was only like three or four of us. So we said sold and we bought some. We say we bought them for 10 dollars. Well, the next thing we know comes in again. He says, work. I sell him again. We say we’ll buy it for nine dollars. And it sold. So we buy some more for nine dollars. We’re dropping the price because we don’t want to be buying less puts at the exact same price becomes it again. This is where I sell now. We say eight dollars. We’re buying for eight dollars. Now I’m starting to accumulate a lot of these. But because the prices are so good that I’m thinking in my mind, I’m like, look, these are great trades. I really started buying from 10 dollars, not buying for a dollar. Next thing you know, it has worked. I sell 10000 bucks. So now I buy a lot of these books for seven dollars. I’m thinking my head, I’m like, I’m buying a lot of points, but these prizes are fantastic. Well, this keeps happening and happening. I just keep buying more and more. Put it the other day, I go to the trading my printing office. I look at my position. I bought approximately 15 million dollars of Google and I am freaking out. I’m a young trader at that time. And if I lose 15 million dollars, if Google doesn’t move for the next month, these options keep losing value. I’m going to lose my job. I’m going to lose my dream job because I’ve bought all these books. That night I go home and I am freaking out my wife. I don’t sleep all night. But I say to myself, look on the open. I’m going to sell a quarter of this position. I’ll take a loss if I have to. I just need to protect my job. Well, then the day starts, the market opens. I immediately sell a quarter, my position for, you know, just a small loss. I started feeling better. A little bit better about all I could think rationally. Next thing you know, Google drops ten dollars, 20 hours. 30 fifty dollars. Eight dollars. The stock drops in the blink of an eye. Those brokers, brokers are going crazy trying to buy points from us. Nobody knows what is going on. I immediately sell my entire position for a massive, massive winter. We have no idea what’s going on, but I’m just getting out of a position for the trade in my career. Next thing you know, stocks all the way back to unchanged on the day. So what’s what is the news that we later found out that drove this big price decline at a Google investor conference? The CFO would put the wrong slide into his presentation, which had the wrong metric on advertising or whatever it was. It didn’t even matter.

[00:34:12] They immediately realized that they had made that mistake and they changed the slide out and that’s when the stock rallied back. And so that was really the greatest trade of my career. It was better to be lucky than one of those bears and be lucky than good serious. But that is the story that I will tell my grandkids one day.

[00:34:33] But does that story top the time that your boss’s secretary hit his opponent over the head with a.

[00:34:42] Was it a printer? Well, that’s another story.

[00:34:46] So you go back in the old days of sorts, there will never be some out of place in the train crowd.

[00:34:52] My boss was one who would definitely get in quite a bit of fights and he would use a very cheap gentleman.

[00:35:00] And he was known for never giving a bonus. Well, one day he’s in a fight with another guy in the train crowd and he the other gentleman has my boss pinned down, hitting him in the face over and over again. Well, my boss is quick at that time as a young lady. Probably about four or five, maybe weighs seventy five pounds. She picked up his printer and hit the guy over the head with it and knock him off. My boss, when the fight ended and my boss walked across the street and took out ten thousand dollars cash and gave his first Christmas bonus a good given in many years.

[00:35:40] It’s a good start. Any other questions? Not seeing any. Let’s go ahead and have that be the final word. But, Jacob, thanks for that. And thank you all for the questions and for joining us today. We’ll be back next month on January 20 3rd at 2 o’clock Eastern. Also with another webinar at this time featuring our growth investing expert, Mike Stoller. You’ve heard about so much today. It’s his 2020 investing outlook, which will feature Mike’s thoughts on the year ahead, as well as three of his best growth stock and ideas. So mark that on your calendar. That does it for us, for Jacob Mintz and the entire Cabot Wealth Network team. I’m Chris Preston. See you next time.



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