How to Trade Almost Any Stock for Pennies on the Dollar

  You are receiving this email because you signed up to receive True Market Insider. [Unsubscribe]( Keep the emails you value from falling into your spam folder. [Whitelist True Market Insider](. Forgot your login information? Click [here](.     How to Trade Almost Any Stock for Pennies on the Dollar   U.S. Equities is a massive asset class. The total market capitalization equals more than $35 trillion. And you’ll find most of that value in stocks belong to one of the three major stock market averages -- S&P 500, NASDAQ Composite, and the Dow Jones Industrial Average. Some stocks have dual memberships. Take Apple (AAPL), for instance. That stock happens to belong to all three of the major indices. But combined, there are more than 3,000 publicly traded stocks in the “big three” averages. Actually, it’s 3,077 to be exact (and we’re only counting AAPL once along with the other stocks that have dual membership). Now, here’s a pop quiz… ========Recommended Link======== --------------------------------------------------------------- [TEN YEARS OF PROFITS](   Join us for Costas Bocelli's 10th anniversary event and find out how you could "write your own paychecks" with this strategy used by elite traders. [More Info...]( --------------------------------------------------------------- Of the 3,077 stocks, how many trade for more than $100 per share? You may be surprised, but the answer is 342. That means more than 10% of the most widely followed stocks trade for more than $100 per share. That’s a lot of cheese for the ordinary investor. Just taking a 100-share position in many of these stocks would have you commit at least $10,000 in capital (without using margin). So, for many individual investors, some of the best-performing stocks that trade with a high share price are simply out of reach. How about stocks that trade above $1,000 per share? There are eight stocks within the “big three” that trade for more than $1,000 per share. And most of them are generating superior returns. Take the S&P 500, the primary benchmark for U.S. Equities. This index is up less than +3% year-to-date. But Amazon.com (AMZN) is up more than +70% since the start of the year. The stock is trading for more than $3,000 per share. That’s a big hurdle for most ordinary investors, wouldn’t you say? Same thing with Mercadolibre (MELI)… The stock is UP more than +105% year-to-date. That’s great for large institutions and hedge funds. But it’s probably not so great for individual investors like you -- because MELI is trading for more $1,200 per share. And what about Tesla (TSLA)? Tesla’s core business is manufacturing electric vehicles. But its stock is acting more like a rocket ship! TSLA has gained more than +250% since the start of the year. And its stock now trades at nearly $1,500 per share. Did you miss the ride on this one? For most individual investors, the answer is likely "yes." But it doesn’t have to be. You see, if you think there’s still plenty more upside in the stock, there's a way to gain bullish exposure in a high-priced stock like TSLA... and it can be done for just pennies on the dollar. How is this possible? By using an options strategy that can cut even the highest-priced stock into tiny bite-sized pieces. It's called a vertical spread. And I use these kinds of spreads almost exclusively for the trade recommendations in Profit Skimmer, my options trading service. It’s perfectly suited to make a directional trade in a high-priced stock such as TSLA. Trading vertical spreads offer many benefits, including: - Cost efficiency and high returns on capital… - Ability to take bullish and bearish positions, even in an IRA… - Limited risk and fully hedged positions. And best of all, it allows you to trade just a slice of the stock while cutting out the remaining portion. Like I mentioned, one share of TSLA costs nearly $1,500. When I looked at it recently, TSLA was trading at $1,483 per share. So taking a 100-share position in TSLA would commit $148,300. But what If I told you that for just $9,500 you can take a directional bet in TSLA that controls the equivalent of 100 shares. That's about a 94% discount. Instead of $148,000, you’d only need to invest $9,500. That’s literally pennies on the dollar compared to the amount of capital needed to take a position in TSLA. So let me walk you through an example of how you can potentially profit should TSLA continue to move higher from here. Let’s say that we're bullish in TSLA and think the stock will retest the prior highs of July 13th, just under $1,800 per share. That’s about a +23% gain from where it’s currently trading. We also think the next quarterly earnings report could be the catalyst to get the stock to or above our price objective. Tesla should report Q3 results sometime in late October. There's also speculation that TSLA will be added in the S&P 500. The company just delivered its fourth consecutive quarter of profitability, which is a requirement for inclusion into the index. TSLA is currently in the NASDAQ Composite. If TSLA gets added to the S&P 500, there will be increased demand for the stock as many index funds will need to own it in their portfolios. In this scenario, we could look to buy the November 1,500 Call and sell the November 1,800 Call in TSLA and create a bullish vertical Call spread. Each Call spread controls 100 shares of TSLA stock from 1,500 up to 1,800. With the stock around $1,483 per share, the cost for each Call spread is $95.00 -- or $9,500. That’s a tiny fraction of the $148,300 needed to control the same 100 shares. Just as important, your risk is clearly defined. That $9,500 is the maximum amount of money you risk -- not a penny more. The trade will return a maximum profit of $20,500 should TSLA stock be at or above our price objective of $1800 per share at November expiration, or 106 days from today. That would generate a +216% profit return on investment. Next time you’re planning to trade a high-priced stock… Think pennies, not dollars. The vertical spread strategy is one way to chop it down to size. See you next time! [CostasBocelliSig] Costas Bocelli True Market Insiders P.S. Many people avoid some of the world's best stocks because of the intimidation factor… and end up missing out on huge profits because of it. I’ve dedicated the past 10 years to showing readers of my Profit Skimmer service how to beat the intimidation factor — and how to take on less risk for potentially much more reward. To celebrate my Profit Skimmer anniversary, I’m going to reveal my methods in a FREE event called "10 Years of Profits". 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