Transcription
I'm going to prepare you for next week because I believe these three stocks are about to break out to new all-time highs in the next few weeks. So, I'm buying these three stocks right now very heavily. I'm also going to talk about three LEAPS call option opportunities on these stocks if they dip down to certain price levels. So, let's go ahead and jump into it.
Remember, this is not financial advice. I'm just sharing what I'm personally doing for educational purposes only. Results may vary. But let's take a look at the account. As you can see, we are at all-time highs in the account. And if you do want to follow me along my journey to hit my 8 figure goal, make sure to be subscribed by clicking that subscribe button down below. And if you get any value out of this video, make sure to hit the thumbs up button for me. I would greatly appreciate that.
Now, let's go ahead and dive into the realize gain loss. I want to show you this as documentation for educational purposes. As you can see, I want to document kind of how we're doing for the month. So, let's go to August 1st. Okay. Um to today and basically we've hit 12K 12.8K in the portfolio. Results vary month to month but I'm on my track for this current month and I'm not the only one doing it. As you can see here in Options Trading University we have clients sharing their inspiration today. As you can see uh this client sharing inspiration. Um you know obviously this depends on account sizes, risk tolerance and stuff like that. But, you know, it's great to see these wins every day following my principles in the group. So, if you do want my trades here in Ryan's Trades and my leaps, entries, and exits, that'll be at the top of the description down below. Also, if you do want my free trade ideas, I give those away on my Instagram and my free newsletter, which are also both down below in the description. So, make sure to be subscribed to both of those.
But, let's go ahead and jump into it. We're going to talk about the markets first. As you can see here, this is the CME Fed Watch tool. I take a look at this every week just to make sure we are getting interest rate cuts because the more rate cuts we get, the higher the market's going to go. Businesses could borrow cheaper rates. Consumers can borrow at cheaper rates and that is going to benefit actually the three stocks that I'm going to talk about specifically as well. Okay. And it looks like we're getting a rate cut 92% odds in September and another one potentially in October and then another one potentially next January. So three rate cuts on the way and that's going to be significant for the stock market.
Now next week uh you do want to be prepared because there is some significant data coming out as well. We have core CPI which is the key inflation measure that basically helps the Fed indicate whether they're cutting or not. And if that comes in good around 2% we could expect those cuts to come in September. We also have initial jobless claims on Thursday. So just keeping an eye out for that. There may be a little bit of volatility next week, but that could provide for some great opportunity. As you see, we're looking here at QQQ. Um, by the time you're watching this, the prices may be different. But, um, as of today, you know, we closed at 569, probably going to open up a little bit higher tomorrow, maybe 571 or even new all-time highs, um, by the time you're watching this. So, with that being said, I do think that we're kind of in a digestion period in the market. So, we could head a little bit higher, but then we'll kind of consolidate sideways before we make kind of that next leg up, okay, to 585 in the next couple weeks. And when that happens, you want to be positioned in the stocks that I'm about to talk about because they are already showing signs of breaking out to the upside. Okay.
Uh, VIX, as you can see, is at 16.58. This is the fear and volatility index. If you don't look at this, you should be if you're trading or investing in the stock market because this basically this tool helps me determine whether I should have more cash on the sidelines or I should be fully invested. Okay? And right now I do have some cash on the sidelines based off the VIX cash allocation levels. And if we take a look at those, we are sitting between VIX 15 and 20, which tells me I could either have anywhere from 20 to 40% of cash on the sidelines or 60 to 80% of my cash invested. Right now, I have about 10% cash on the sidelines as I'm very aggressive going into next week because I think that these stocks that I'm investing in and I'm buying up right now are going to head much higher. So, I'm definitely more aggressive right now. But this, if you want to screenshot this, this will keep you safe um and make sure that you have cash on the side when there is a market downturn while most investors are fully invested at the top. Okay, so again, if we took take a look at the VIX, I think this thing could come down sub 15 in the next couple weeks, maybe 14 or even 13 before we get that next um mini crash or a correction in the market. So that's kind of what I'm anticipating.
But let's go ahead and jump into the three stocks that I want to talk about that are about to break out here. So the first one is going to be Meta. Okay. All the stocks I'm going to talk about had amazing earnings. Okay, they fit the criteria fundamentally and these stocks are very um are a safer play in my portfolio because I know that not only are the fundamentals good, but the chart also shows and reflects the fundamentals of the company. So this company 761 it's trading at um current PE ratio 27 which is extremely low and I'll show you why that is but basically last this past quarter okay earnings 38% profit margin and really Meta is investing heavily into Meta Super Intelligence Labs okay so I believe that Mark Zuckerberg it's my opinion that they will create the first artificial general intelligence and have AI wearables kind of mass marketed to the public. Okay, so I'm betting on this play by buying Meta. Okay, now how I'm doing that is I'm selling cash secured puts and I'm also looking for a good leaps entry opportunity. So if we take a look at Meta, one thing I want to point out here is that when this thing was trading at um 740, okay, back in February before the crash when we had that huge gap up, we had this huge um you know kind of run up from here all the way to here, which was a 20 17% run up. I believe that we are in the works for another one of those. Okay. Um, now the reason I say that is because if you look at the peak here, all right, look at the peak of where this stock was, 741. The PE ratio was at 31. Okay? And we're overextended on the RSI. Right now, the PE ratio is 27 and the stock is at a higher price, meaning they are earning more per share. So, they are doing better as a company than they were back in February. Okay? And the stock is not even close to being overbought on the RSI. In fact, it's coming in here right making like a potentially a small bearish little crossover on the RSI which might provide for a leaps entry opportunity. So this is what I'm looking out here for next week. Okay, if this thing can touch anywhere between, let's just say 748 and 755, okay, that's going to be an optimal entry for a leaps opportunity to then ride this thing up right to this next kind of leg up phase. Okay, I believe that the PE ratio should be somewhere in the 30s because this is a high growth company and they are investing everything possible into Meta Super Intelligence Labs, hiring some of the most brilliant minds that have worked at Google, that have worked at OpenAI and have worked at uh Microsoft as well. So that's what we want to see and I think that this company is going to do exceptional um in the long term.
So, uh, right now, let's go ahead and dive into the portfolio so you can see exactly what I'm doing. But remember, this is not financial advice. I'm just sharing what I'm personally doing for educational purposes. Results may vary, but let's take a look at the account. Okay, as you can see, putting my money where my mouth is. 10% cash. Actually, a little bit less. This is probably closer to 9% cash. But as you can see, um, Meta, we have 150 almost 150K worth of cash secured puts. Okay. Now, I am very heavy in Meta. I'm debating on taking profits on one of these once I'm in profit. Okay. Um and then switching that over to a leaps call option. So, let's go ahead and dive into it. Now, if I want to play it safe, right, I would basically do what I'm doing right now. I would just go for, you know, um a 35 to 37 delta cash secured put. Collect 2.29% ROI in 30 days. Remember, these aren't these results are not guaranteed. These numbers vary based off fluctuation of the stock, but I would go ahead and sell the 750 put, collect 1655, right? But that's going to tie up 75 grand of capital if assigned on those shares. Okay, so this is a major kind of portion of the portfolio. All right, but I do have two of those on, right, to collect um for August, 2,700 bucks. Okay. Now, what I'm thinking is if this thing could get down to those levels, which already have cash secured puts there at 745 and 750, but if we get down to those levels, I'm thinking of going out to January 15th, 2027, 500 days out, and then picking up okay, one of these. So, I would basically pick up pick up like a 65 to 70 delta potentially a 70 delta leaps option which would cost 18 grand which is quite a bit but it's much less than buying 100 shares at $765 which would cost me 76k. Okay. So, I'd be able to control 100 shares for 18 grand versus 76 grand which is you know almost a four times leverage um on my capital. Okay, so I like that play, but I'm waiting for a perfect pullback on this stock. Okay, so that's going to be the play for Meta. Lots in the on the in the pipe works for Meta. I think this stock is going much higher and potentially by the end of the year, I think this thing could get to as high as 900, maybe even a,000, which wouldn't be far-fetched um in my opinion from here. Okay, that would be like to a,000. that would be a 30% gain. You know, with the stock being at a 27 PE, that wouldn't put it much higher. That would probably put it closer to 40 PE. Um, but I think that's definitely possible, especially with the next couple quarters of earnings if those come in positive as well. Okay, so that's just my outlook. And one last thing to touch on Meta is that when interest rates come down, advertisers spend more money. Okay, they borrow more and they spend more because if they're able to borrow at cheaper rates, businesses, and they're able to get turn $1 into three by spending money on ads, they're going to do that over and over and over again. And we've seen this happen in uh you know, in the stock um you know, benefiting going into obviously the winter months with Christmas coming around, businesses do advertise more. So, I'm also front running that by getting into the stock early before their positive earnings in those particular quarters. Okay, so let's go ahead and get into the next stock, which is SoFi Technologies.
Now, SoFi had an amazing earnings. And the cool part about it is that the stock already shot up and it showed you kind of where the potential of this stock could go. All right, it went all the way as high as $25. Now, they did issue $1.5 billion worth of shares, okay? and that pushed the price back down. But the stock then stabilized and now it's kind of stabilizing around this $22 area. PE ratio is 43. Okay, they had a better quarter last quarter. Um 8.61% return. If we look at the um that was actually 8.61% margin, but if we look at the investor relations, it said adjusted net revenue is up 44%. Record to 858 million. Okay, all these numbers are records. Adjusted EBITDA up 81% to a record 249 million right um member growth up 34% double-digit growth in all of their numbers and guidance even raised by management um to be very bullish for the next quarter. So this is what we want to see in a company like this. If we take a look at the stock, it's reflecting the the earnings very well because it shows a 44 PE as of now. Okay. And then back when this thing was at like 16 bucks, this thing was trading at a 44 PE. Okay, so they're earning more per share right now than they were when they were trading at 16 bucks. So this tells me that the company is in growth mode. Okay, this isn't a company that's already mature and that, you know, is earning more. This is a company that's very small. Okay, if we look at the market cap, it's at 26 billion. I believe that this could be a hundred billion dollar stock, maybe even $200 billion. So, it's still a very small company and it's growing. So, this is what it's telling me. The stock is showing me a nice consolidation period. It's showing me potential of where it could go. Okay? Like from right where it's at right now, if it just hit all-time highs, that would be 13% up from here. Okay? But I'm waiting for this thing to get to this lower area by this $20.79 mark. Let's call it 2075. If it could get somewhere close to there, that would be a good leaps opportunity to not only hold through this, but also hold through the next breakout. Okay, so that's going to be a leaps opportunity that I'm eyeing there. It's showing it's attempting a bullish crossover on the RSI and MACD is starting to rotate upwards as well. So, if we don't break out already, you know, um, by the time you're watching this, I think next week, you know, on any type of pullback, this would be a good leaps opportunity.
Now, let me talk about the cash secured puts because I think that is the safer opportunity for my portfolio. Let's take a look at the positions. As you can see, total portfolio um cash secured puts total 139K and we have the 22 and a halfs that are in the money. Okay, to collect um I'm collecting about 2,900 there. Total I'm collecting 4.6K for the month of August, but um you know, I have the 19 and a halfs and the 21s. All right. I think that if you could get anywhere a cash secured put somewhere at this lower level at the $20.50 50 cent or or lower, even $20 level. You're going to be, you know, I'm going to be super safe there. So, let's go ahead and go to the options chain. I would go out 36 days. All right. And I would just go to that 20.5 and that's going to yield a 3.74% ROI. Results aren't guaranteed. These numbers fluctuate, but um essentially right now, if I were to sell that, I would pick up 72 cents or 72 bucks per contract. And that is a good ROI for me. Okay, that meets my return goals. So, I like that strike. That's pretty safe in in my books. And we're getting to the lower end of um you know, of where the stock is actually right above that lower Bollinger band. Okay. And if the stock went down by, you know, by expiration, it went down here to 20, maybe even 19, that's fine. We'll pick up the shares, sell some covered calls, and then ride it back up. Okay. But I don't think that I think more likely this thing's going to break out to the upside. So that's my take on SoFi. Wonderful company. PE ratio is low and it's actually more undervalued right now than it was uh prior to the crash. Okay, so that's that stock.
Now, let's go ahead and get into the last stock, which is probably my favorite stock in the portfolio. That's Robin Hood. Robin Hood had a little breakout today. Okay, 111 bucks, 5% up. By the time you're watching this, might be a little higher, might be a little lower. Just prepare for next week. Okay. Um, if we look at the PE, it's at 53. Not the lowest it's ever been, that's for sure, but not the highest it's ever been. Okay. And if you look at last quarter, they had a 38% net margin. Okay? That's what we want to see. Massive margins. And they're releasing their Layer 2 blockchain, Robin Hood Chain. This is coming probably by fall or winter of this year. So, this is what I'm anticipating and I'm front running because I think that a lot of people are rotating out of Coinbase and going into Robin Hood because Robin Hood is the platform to use. Now, the reason I think that is is because if they open up their own blockchain and they offer tokenized securities, meaning tokenized stocks, a lot of crypto investors that are in high-risk altcoins are going to reconsider when they could go pick up a company that actually earns money and they could just buy that tokenized security. So, I think that Robin Hood is going to be the leader in the brokerage space. I think they already are at this point. Okay. They have recurring revenue via their Gold their Gold membership and that's something that I don't believe Coinbase has. Um they might have a subscription like that that I'm not aware of, but um it's not as good as Robin Hood's in my opinion.
Okay, so let's look at Robin Hood. All right, technically we already broke out of a little bull flag here. There was a little bull flag that uh was loading up and it and it broke out. Okay. Um, now if we kind of draw this line up here, it's kind of forming a bigger a bigger flag here that I'm looking at. So, if this thing could come down back to this 105 area, okay, that's a leaps call option opportunity, leaps, and then you ride that up for a breakout. Okay. Um, if not, there are some amazing opportunities in cash secured puts. Okay. Uh, again, 56 PE as of now. Um, if we scroll back, okay, there's been times where this thing was much higher. Um, especially when their earnings weren't as high as well. Like back here in December of 2024 when they weren't earning much or if anything um you know their PE was yeah they were earning but you know their PE was much higher. Their PE was at like 69 70 and then you know if you go back earlier it was upwards of 100. But right now I think with the growth in mind I think this stock is still very small relative to competitors 98 billion this could be a multi-hundred billion stock right uh especially tapping into the crypto space and taking advantage of all the fees over there and taking advantage of all that capital that's in stable coins that's in altcoins that have no value in my opinion. Um, and they're going to be rotating into tokenized securities, tokenized assets um, on the Robin Hood blockchain. So, I think Robin Hood is the next uh, big opportunity. And if we look at the chart, I do think this thing could easily, you know, continue this trend line. So, if we just extend this trend line out, all right, and we extend it out to, I don't know, September. All right, this thing could get as high as 130. So, the next breakout might be coming. The next breakout might be coming. And I don't want to miss this for when QQQ um you know finally breaks out and hedge funds and institutions really start investing heavily.
Okay, so how I'm going to play this again, we're going to go to the position and as you can see I have 141k worth of cash secured puts. These things are coming due. Um I'm going to be closing these out soon because I want to get higher and closer to the stock. So, right now I just have the 94 puts that is basically um you know 94. We're going to draw that out just so you could see where I'm at. 94 is right here. So, I'm pretty well below where the stock is at. In fact, if this stock went down to my strike, that would be a a 15% discount on the shares. Okay? So, of course, I would love to get assigned at a 15% discount, but I don't think that this stock is going to come down that far. Okay, so I do want to roll these up potentially to the 100, you know, uh not somewhere around the 100, maybe even the 102. Okay? Nothing above this middle Bollinger band, but 102 would be fine as well. So, let's go ahead and go to the options chain, and we're going to take a look at what I would do. So, I would go out September 12th and again, I would probably go to that 102 strike, collect 4.5% ROI. Results aren't guaranteed. These numbers fluctuate, but I would probably go for this strike. Collect 435 and call it a day. Okay, I really like that. I like the return profile there. Meets my return goals per month. Um, and that is, you know, if it get assigned at 102, great. Picked up the stock at a little discount and I can ride it back up. But that's going to be the cash secured put play.
If I do a leaps play, if this thing goes down, okay, I'm gonna go out January 15, 2027, go to the 70 delta, pay about 4K, 3,900 bucks, about 4K almost, let's just call it 4K per contract, and I get to control um you know, almost $12,000 worth of about $11,000 worth of shares. Okay, so this is a a pretty significant, you know, almost 3x leverage on capital. And that's how I'm going to play it. So, if you enjoyed this video, I look forward to seeing you in the next one. Please give it a thumbs up and take care.