Is LMND the Lone Survivor of the Tech Stock Massacre?
I normally get one, maybe two stock requests per reader for Bank It or Tank It.But a few months ago, Mark C. sent me two dozen tickers. I’m STILL working my way through the list. And as I do, I’ve noticed one simple thread connecting these names. Almost all of them surged right after the pandemic… but have been left for dead ever since. Take Lemonade (LMND) for example. The stock went public after the pandemic, surging over 300% from September 2020 to January 2021… Only to drop 85% in a straight shot lower. It’s clear a lot of folks got caught up in names just like this. Those early surges made them really popular, really quickly. Not to mention some help from the talking heads. Just see what Jim Cramer had to say when LMND was at $183.
(It closed at $22 yesterday.)But if you ask me, these stocks are worth a look now… The hype is gone, the dust has cleared… And now — with valuations SO much lower — it’s time to dig in and see if these names have legs. So today, we’re doing a full rundown on Lemonade. The key stats, the competition, the unusual options activity — and most important of all, the chart. I have a few key levels to watch, which will tell us if we should bank on shares heading higher… or tanking even lower from here.
To get my take on Lemonade, simply click below to start watching.
Mark, thanks for your suggestions. I’ll get through them all in time…TrueOptions@BanyanHill.com with a stock — or 24 — you’ve been eyeing.) You can apply the process I used in today’s video to nearly any company out there. It’s a great way to find your own trades. But if you’re overwhelmed by the thousands of tickers to choose from, you’ll want to see this… Mike Carr has developed a strategy that trades just ONE ticker symbol, week after week. It’s the simplest options trading strategy I’ve ever seen — but don’t let that fool you. At the height of the pandemic in 2020, One Trade beat the market by 8x.Mike targets triple-digit gains every single week. Many of them have come in a matter of days. If you want the next one in your inbox, click here to learn more.(And if you haven’t written in yet, be sure to leave a comment or write
Regards,Chad Shoop, CMT Editor, Quick Hit Profits
P.S. I hope you caught my latest Quick Takes LIVE last Thursday.Think of it as Bank It or Tank It in real time. You throw out your top trade ideas, and I respond on the fly… Last week, viewers had DKNG, HPK, and CEI vetted by my Profit Radar and unusual options activity. But if you missed it, don’t worry. You can catch up here — and comment your favorite stocks, so I can feature them my next video.
Chart of the Day: Netflix, With a Twist
By Mike Merson, Managing Editor, True Options Masters
Today, I want to look at a chart of Netflix (NFLX) for a few reasons:
- Yesterday, on 4/20, it had officially dropped 69% from its all-time high, which must have Elon Musk rolling on the floor laughing so hard he can’t breathe.
- It dropped 35% in a single day after a devastating earnings report, showing that it lost subscribers for the first time in a decade (and expects to lose orders of magnitude more).
- I learned of a new way to look at stocks — and it should raise an eyebrow or two.
This chart obviously isn’t the regular NFLX chart. Netflix hasn’t gone down for 10 years.It’s NFLX priced against not the U.S. dollar, but bitcoin. And as you can see, even one of the decade’s most successful tech stocks has done nothing but bleed out when compared to bitcoin’s gains over time. Now, why look at stocks like this? Isn’t this an apples-to-oranges comparison? Not at all… If, that is, you’re like me and think bitcoin could one day become the world reserve currency. The U.S. dollar inflates year after year. Bitcoin, with its hard cap, will only ever inflate so much until the 21 million limit is hit. So why should we compare a stock’s gains to a rapidly inflating currency? Wouldn’t it make more sense to measure its performance against something that’s gaining buying power, not losing it? This is a philosophical question that I’m surely not the first to raise, nor the last. And I’m aware it’s a tall order to find any stock that’s outperformed bitcoin over the last decade. Still, this chart is compelling to me. And I think it could be a glimpse into how we value assets in the not-so-distant future.
Regards,Mike Merson Managing Editor, True Options Masters
Investing has consumed my life since college. While double majoring in finance and economics at the University of North Carolina at Greensboro, I founded the university’s economics club, joined the finance club and participated in the Chartered Financial Analyst research competition to represent our school.