Listen up, folks. The market just took a nasty tumble, and September is historically one of the worst months for stocks. Fear is in the air, and many investors are running for the exits. But guess what? This could be YOUR chance to make a killing.
That’s right. While everyone else is panicking, I’m getting ready to use one of my favorite options trading strategies to potentially triple my money… and you can, too. It’s called the “Squeeze Play.”
Here’s how it works:
Smart traders, like my friend Nathan Bear, use technical indicators to spot stocks that are getting ready to make big moves. We’re not talking about buy-and-hold investing here. This is about capitalizing on short-term volatility – and using options to maximize your returns.
Two key indicators Nathan looks for are “squeezes” and “stacked EMAs.” Squeezes occur when a stock’s volatility compresses, indicating that it’s about to make a big move in one direction. You can spot these on a chart using a “squeeze indicator.” Stacked EMAs (Exponential Moving Averages) tell us the stock’s momentum is shifting. When the shorter-term EMAs are above the longer-term EMAs, it means the stock is gaining strength and is more likely to move higher.
As Nathan explains in his recent article, “In a squeeze, more traders are trying to buy shares than there are shares available…This causes a traffic jam as everyone rushes to grab the next spot.” He uses options, specifically calls, to leverage these moves into monster gains. But this strategy is not for the faint of heart! As he warns, “Squeezes can be unpredictable. Which is why it’s crucial to use proper risk management and stay emotionally disciplined throughout the trade.”
Here are three stocks showing these patterns right now that could hand you triple-digit returns – while everyone else is panicking:
1. DoorDash (DASH): A Delivery Giant Ready to Explode?
DoorDash is already a leader in the food delivery space, and it continues to expand its business into new areas like convenience deliveries. The company just blew past earnings expectations, and it’s showing clear signs of a major breakout.
As Nathan pointed out in his recent analysis, “DoorDash achieved record-high adjusted EBITDA of $430 million and increased free cash flow by $140 million”. Not only that, “…there is an A+ setup on the 195-minute according to the S.A.M. AI Scanner.” These are powerful signs that big money is flowing into DASH, and it’s getting ready to make a major move higher.
2. Spotify (SPOT): Is This Music Streamer About to Hit a High Note?
Spotify has quietly been hitting new highs all year as it continues to add more users and expand its subscription services. The stock is showing all the hallmarks of a major breakout, with squeezes appearing on multiple timeframes.
Nathan is very bullish on SPOT. As he says, “Now, here’s where it gets interesting – we’ve got fresh squeezes setting up on multiple timeframes: the daily, 195-minute, and 130-minute charts. That’s the kind of confluence I love to see.” He’s even going so far as to tell folks to, “Ignore the market meltdown!” because he sees the potential for huge gains in SPOT.
3. Entergy Corporation (ETR): A Power Play in a Volatile Market
Entergy is a reliable utility stock with a solid dividend that’s poised to profit from the increasing demand for electricity. But it’s also showing a very compelling technical setup, with squeezes appearing on its daily and weekly charts.
Nathan sees the same potential here as he does with SPOT. He said, “Entergy Corporation (ETR) is a stock I’m watching this week in Daily Profits Live….It’s a top stock on my watchlist and I’ll be looking at a potential trade this week.” This is a stock that’s both reliable and capable of making big moves, which is perfect for our “Squeeze Play.”
Remember, I’m not providing specific trading advice here. But if you’re looking for opportunities to profit from the market’s volatility, this is a powerful strategy.
Make sure to do your own research before making any trades. This strategy is best implemented with options, which are risky if you aren’t comfortable with how they work.
Now you know how to potentially turn market fear into serious profits, and that’s a powerful skill to have in your arsenal. Tomorrow, I’ll cover three gold and copper stocks to buy as the dollar is on the verge of collapse.