More Gains From Dark Pools

The Dark Pool system keeps churning out great trades … checking in on a live trade … a special Dark Pool Summit with Stefanie Kammerman and Matt McCall

HOLY MOLY Dark Pool prints were coming in all week long!

I love when this happens because we have so many new swing set ups.

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That’s how Stefanie Kammerman opened her Dark Pool Trader update this past Monday. She then walked through four new Dark Pool trades.

Today, we’re going to check in on one — in real time — so you can get a sense of how these trades evolve.

But then, even better, we’ll tell you about a special Dark Pool Summit happening next Wednesday. The event will feature Stefanie and Matt McCall, discussing this powerful Dark Pool system, and how to put it to work in your portfolio.

There’s going to be lots of great information that we haven’t had time to delve into here in the Digest. So, if you’re curious about Dark Pool trading, this is a must-attend event.

More on that in a bit. But for now, let’s back up to make sure any newer Digest readers know what’s going on.

***Over the last few months, we’ve been featuring Stefanie Kammerman and her Dark Pool approach to the markets here in the Digest

We first profiled the “Dark Pool” in our March 4th Digest. If you missed it and want all those details, click here to read that issue.

But as a quick recap, Dark Pools are private stock exchanges where the Wall Street “big boys” place their trades. These exchanges allow traders to buy and sell huge blocks of shares without running the risk that other traders will see their hand.

The reality is that when an institutional investor makes a big move in a stock, it can easily push that stock’s price around by 5% – 10% in the span of a week. That’s why they make their trades on Dark Pool exchanges in an attempt to camouflage what they’re doing.

Now, imagine you were tipped off about the buying and selling activity of these giant institutions … imagine you could anticipate what stocks and ETFs were poised to make these moves, and then ride along with that momentum …

Well, you can.

That’s the foundation of Stefanie’s Dark Pool strategy.

Stefanie has been trading this way for 26 years now, beginning with one of the biggest proprietary trading firms in the country. Eventually, she left and began making a Wall Street-sized income while trading from home.

Over the last few months, we’ve been profiling her trades here in the Digest.

In short, she’s been racking up a slew of big winners. And finally, she’s ready to offer up trading service to investors like you and me.

***What are the details of the Dark Pool system?

Stefanie’s first trade which we profiled here in the Digest was on oil services giant, Schlumberger.

It wasn’t clear which direction the stock was headed. All we knew from the notice was that a big move was coming. So, the instructions were to buy both a bullish and bearish position — that way we’d be covered regardless.

The way Stefanie does this is through options.

Don’t worry if you don’t fully understand options. In Stefanie’s service, she’ll explain all you need to know. It’s not complicated.

For now, all you need to know is that if you’re bearish, the option you’d buy would be a “put.” If you’re bullish, you’d buy a “call.”

If you’re unclear about direction and want to be covered either way, you would buy both a put and a call. This is called a “strangle.”

It’s common for Stefanie to recommend a strangle, like she did on Schlumberger. If you’re confused how such a two-sided trade could make money (wouldn’t these puts and calls cancel each other out?), let’s return to the example …

By the end of the trading day of Stefanie’s alert, Schlumberger’s stock price was sliding (good for the put, bad for the call).

The next day, it fell further …

Just two days after the “buy” notice, Stefanie sent word to close half of her Schlumberger puts … for a ROI of 108%.

The following day, she sent instructions to sell the second half of the puts. This time, locking in 180%.

A simple, blended return of 144% on the bearish side of the trade … in just three days.

Now, to be clear, the bullish side of the trade — the calls — didn’t go anywhere. So, that invested capital went to $0.

But as we just noted, the blended return on the puts was 144%. So, even with the calls, the total return on the entire strangle was still nearly 75% … in three days.

That’s how you can buy both directions of a trade and still make big returns.

***Let’s look at one of Stefanie’s open trades from earlier this week to get a sense of how these trades evolve

One of Stefanie’s trades from her Monday update is on MGM Resorts International.

She saw a huge 13 million Dark Pool print come in, which tipped her off about the trade opportunity.

From Stefanie:

Earnings are coming out on July 23rd, 2020 so it looks like somebody knows something ahead of earnings.

Unfortunately, we do not know which is why I recommended a strangle with a lot of time going out to Sept 18, 2020.

As you know from above, a strangle means Stefanie suggests buying both a bullish call and a bearish put.

Her buy-price for the call was $0.23 per share. And her buy-price for the put was $0.18 per share.

So, how is this live trade shaping up?

As I write, the buy-price for the call has dropped to $0.19. So, that side of the trade is down $0.04, or 17%.

However, the buy-price of the bearish side of the trade — the put — has increased to $0.27.

This means it’s up $0.09, or 50%.

Averaging 50% gains against 17% losses puts the trade at a 16.5% gain so far.

Keep in mind, because these options don’t expire until September, this trade has plenty more time to develop — potentially turning into yet another big winner.

Speaking of big winners, since we began highlighting Stefanie’s trades in the Digest, she’s recommended a 60% winner on Freeport-McMoRan … an 89% gain from Wells Fargo … a 91% winner with the iShares MSCI Japan ETF … and a 130% gain with the SPDR Select Energy Fund, XLE, to name a few.

What other strategy enables you to be 100% wrong on a trade’s direction, yet still make double, possibly triple-digit returns in just days or weeks?

***Join us next Wednesday at 7 pm ET for the Dark Pool Summit

Stefanie will be sitting down with our own Matt McCall to discuss her Dark Pool system.

It turns out, Matt and Stefanie go back four years — and Matt is a big believer in her strategy.

Next Wednesday you’ll learn why when the two dive into the Dark Pool details, discussing trades, and revealing the nuts-and-bolts that you need to know in order to put the strategy to work in your own portfolio.

It’s a free event — just click here to reserve your seat. It’s going to be an exciting night, so I hope you can join us.

Have a good evening,

Jeff Remsburg

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