My Next 3x Stock. Stock Options & Options Trading
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Well holy smokas guys! I just made a $21k options move that I believe will 3x my money.If you guys follow my channel, you know that I do not do very many options plays, but when I do I have to firmly believe that there is almost no risk.
And this stock that I bought options on I am almost certain that I won’t lose all my money.Hope you enjoy this video where I talk about a move that I rarely make. I will tell you which stock exactly did I buy options on.
But most importantly I will tell you why I did this move and why I think it’ll 3x my money. One big thing I will talk about in this video is why I decided to do options and not just straight up stocks.
Leave me a comment with your opinion on this move. Do you think it was a good move or do you think it was a bad move? Also let me know if there is any options you are doing. And let me know stocks that you are buying now. Or of any stocks that you are watching. ENJOY!
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Holy smokes guys Today we’re gonna talk about a call options move I made here yesterday okay, but first off I gotta give some love to anybody that owns the stocks with me okay because I know some of you guys will buy some of these stocks that I’m invested in I just kind of say congrats to you guys.
Because there’s three particular stocks here today that are doing absolutely unreal that I own and a lot of you guys probably okay, slack amazing day basically announcement came out that Salesforce might end up buying them out the stock just went crazy after that news, So congrats to everybody that owns that stock a Nordstrom another massive day for this stock.
The stocks been trading mostly 28 $29 all day absolutely crazy. I mean, this was a stock that was 11 or $12. Like literally three weeks ago. Okay. So congrats to anybody that’s gotten in Nordstrom in the past, let’s say couple months because you are making money hand over fist.
Okay. And last one is the very company, okay, congrats to anybody that owns that one, that stocks making a huge upward move here to have seen it up, you know, 15% Plus, most of the trading day.
So I just wanna say Congrats. I mean, this video is not about those stocks. But I want to say Congrats, because those moves are epic in those particular stocks here day. And by the way, s&p 500 and dow are down today. Okay, so it’s not like, oh, the whole markets just so amazing today.
No, it’s very, you know, this is why it pays to be a stock picker in the day because even in days when the market goes down, if you own great companies that produce great results, man, there’s a lot of money to be made. Okay, so anyways, let’s get into what we’re talking about here today in this video, okay, yesterday, I bought $21,000 of call options in one particular stock, okay.
Now, I mean, that sounds like a really large amount of money to be playing around with options. Okay, so in this video, we’re gonna get into what stock This is, okay, we’re gonna get into why am I so bullish on the stock that by $21,000 worth of call options, I don’t think I’ve ever bought that much worth of call options ever in my life in terms of one day into a particular stock.
And then after that, we’ll get into basically, why would I buy $21,000 of call options, okay, rather than not just like, buy the stock straight up, but that $21,000 Okay, we’ll get into that.
As well as video as well as we’ll also talk about funding to buy more options and stock, more shares, the stock, things like that, okay, but real quick, three things we’ve got to address before we even get into this video, okay, because I think these things have to be set. Okay.
Number one, these options could expire worthless, okay, we’ll talk about the strike price, we’ll talk about the premium I paid and all those sorts of things. And essentially, it’s very possible these options could expire worthless, which would mean essentially, I would lose all $21,000. Okay, that has to be said, Before we get into this.
Number two, remember, I have millions of dollars invest in the stock market. So although you might hear you know, a lot of people could come across this video that don’t even watch my channel, they don’t know.
They’re like, maybe this guy has $50,000 to his name, and gosh, he’s putting 21,000 in stock options, you know, you know, I have obviously, you guys know, the type of money I have invested. Okay, so 21,000 is a very, very small percentage of the money I have in the market essentially, like a very, very, very small percentage.
And so I’m willing to take that risk on something like this because it’s a very, you know, small amount of money relative to like how much I have in my accounts in total, okay. And number three is I rarely do option plays.
Okay. I’m not some big options trader and I’m not super into options trading. Okay, I do moves few and far between when I see a big opportunity, and I just feel like the stock is so massively undervalued.
Sometimes I will buy long term out calls this usually what happens okay, so I’ll buy something that expires, like two years from now, these options we’re getting into here today expired more than two years from now.
Okay, so like, they’re really considered long term call options in this particular stock. Okay, hope you guys enjoy today’s video.
As always, if you don’t mind smash, that thumbs up button helps the YouTube channel massively appreciate each and every one of you guys, and you know, that kind of show some love that you appreciate me sharing something like this, I’m doing a move out there.
That’s different than what I usually do. Because usually you guys know me, I’m just buying stocks straight up. So for me to, you know, tell you about an options move.
This is a very few and far between. So hope you guys appreciate that. Also, if you’re looking to try to get in my private stock group, financial fortress, make sure you fill out an application within the next week or two, try to get on the call with somebody hired from my team essentially about that program because essentially.
Anybody signs up for a two year membership within the next two weeks, you get a free month of coaching with a six or seven figure coach, so it’s pretty dang epic. It’s a pretty epic deal we’re doing for Black Friday and Cyber Monday.
That’s going to be linked in the description also have that as the pinned comment, as well. Okay, let’s get in this guy. So in this video, let’s talk about what stocking what stock is, well, this particular stock.
I feel like this stock is going to To x or 3x within the next two to three years, okay, I would say there’s an 80% probability 80% that this stock two x’s or more within the next two to three years, okay, so I am feeling extremely confident about this one over the next couple years, right? And what stock is this? It is Dropbox, okay, Dropbox stock is the stock up here, okay.
Dropbox is about a $19 stock somewhere around there, roughly big cloud company. A lot of people that have small businesses, midsize businesses use Dropbox, we’ll talk a little bit about some interesting things that are going on with their business model that I just don’t think Wall Street’s picking up on yet.
But believe me, as what happens most times in most stocks, they get in before Wall Street, they all figure it out eventually, and then they jump on board. Okay, so Dropbox here, under a billion dollar market cap on this particular one, a four p on the stock of 20k 20.
And keep in mind, Dropbox will beat numbers a lot of time. So don’t be surprised if next year, their their earnings are stronger than actually what analysts expect on average. Okay, so this company is trading extremely cheap, okay, that’s the best way to put it. I mean, the market in general is probably at a four pa 20 or so.
And this is a growth company. So company growing double digits and expected to grow double digits for years to go in the future. I mean, it’s, it’s crazy, they have almost no customer concentration. It’s a magical business model, recurring revenues, which is like the holy grail of business.
I mean, it is, it’s, it’s a beautiful, beautiful thing, okay. And when it comes to Dropbox, cash loaded to the sky, well over a billion dollars, actually over $1.2 billion, just in cash.
This isn’t like some massive company that has like a, you know, $80 billion market cap or $150 billion market cap, this is Louis, we looked at a seven $8 billion market cap, so have 1.2 billion in cash is a crazy high number, right?
So you’re looking at that and that a lot of that money will probably be used on share repurchases or acquisitions of other companies that are growing fast in their type of space, which is the enterprise right? also small business space, making people’s lives easier when it comes to documentation, documents, all those sorts of things. Okay, Dropbox beautiful.
And when you think about Dropbox, just don’t think of it as this desktop thing. Or this app you might have where you store documents, like I’ve been using them for probably over five years. Now. It’s not just about that.
And it’s not just about the smart workspace opportunity for this company over the next, let’s say 510 years. Okay. It’s also about this acquisition they did about two years ago, which is the perfect acquisition at the perfect time because guess what, because of Ronnie Rona, that has made like the move to paperless and like electronic e signing of documents, like way faster than ever thought before.
And hellosign has a has a great opportunity to be the number two player in this market. Long term. Okay, in their integrated with Dropbox. Okay, so all these e signing of documents. I mean, we all know the company that is the big dog in the space has DocuSign but this Hello sign is extremely loved by people.
Okay, as far as pricing, they got a ton of different pricing packages, whether you’re a small business, midsize business, a large business, anything across the board. hellosign is theirs for those people.
Okay, so it gets like a 4.5 4.7 out of five stars on most of these review sites and whatnot. I mean, that’s on 563 reviews there. People really love this product, kay hellosign is the easiest way to send, receive and manage legally binding signatures for your business of any size. Okay, so I really liked this one, keep in mind DocuSign.
They’re the big dog in the space. Okay, they’re number one player in this market, right? DocuSign has a market capitalization of $41 billion. Okay. 41 billion, like that is, you know what I mean? Like, like, think about this, how big this market is helping the team is that hellosign is going after it people love that product.
They’re integrated with Dropbox, they’re gonna continue to expand that huge over the coming 510 years, never mind over the next two or three years, right. And here you are with DocuSign, the big dog in the space having a 40 plus billion dollar market cap.
Dropbox is at 7.8 billion, okay. And when you buy Dropbox a company, right, you’re getting a great cloud company, right? You get in smart workspace, which is a whole new endeavor they’re going into this year specifically and moving into future years. That’s huge opportunity for them.
And you’re getting potentially the second biggest player in the world long term when it comes to E signing of documents with hellosign. There. That is epic, okay, for $7.8 billion.
That is, this is why I feel so dang confident that I’m willing to go out there and buy $21,000 worth of call options and stock okay, because I’m just looking at this company across the board and I’m dang excited. Okay, Drew housden.
He’s the one that runs this company. He’s a founder of the company. You know, he Still as in as engaged in the business as ever before, then he’s actually even going to do a role that’s really more focused on just like the vision type stuff with this company going forward.
And I love that he’s given up more like the day to day like just the, what I call the busy work type stuff to another gentleman, and he’s going ahead and Drew’s just focusing on the vision, his company executing on that, what’s the big opportunities they can go after?
Okay, and you know, he’s in with, he’s in with everybody you want to be in with? He’s on the Facebook Board of Directors, one of the biggest tech companies in the world.
He’s Zuckerberg, his friend, right? You know, he’s investing company with Marc Benioff. Who’s Guess what, Marc Benioff, he runs Salesforce, right? Salesforce, they’re trying to do a deal right now to buy, what are they trying to buy? They’re trying to buy slack. We covered that at the beginning of the video, right?
And so Dropbox stock wasn’t respected over time. You know, don’t be surprised if you know, maybe Salesforce would try to buy something like a Dropbox for $30 $35 a share something like that. Okay.
It’s definitely definitely a possibility, by the way, this completely random, but I just looked up some stuff around your house and, and this just came out a couple days ago. He’s actually leaving California. Moving to Texas.
Interesting. Hey, okay. Alright, guys. So, needless to say, I’m very bullish on Dropbox. I mean, you know, if you follow my content heavily, you probably already know that if you don’t follow that heavily now, you know, okay, I am very, very, very, very, very, very bullish on Dropbox over the coming years, not just the next two or three years,
I’m bullish on this company over the next five plus years. Okay. And I’ve been buying the stock heavily. And, you know, obviously with options, okay, now, why $21,000 specifically of call options and not just buying the straight stock. Okay, so here’s a screenshot essentially, of what I have in those Dropbox options right now.
Okay, Jan 20 2023 $20 strikes came, as far as my cost basis, I paid $4.70 for him there. And that cost me just over $21,000 there and I have I own basically 45 contracts. As of right now, each contract represents 100 underlying shares.
So essentially, I have the power to 4500 shares, as of right now underlying there, okay. Now, this is essentially when they buy call options, if you’re confused, all this is essentially a bet that I believe this stocks gonna go up and likely go up substantially.
But just at the end of the day, like a call option, you buy a call option, you’re betting that the stocks going to go up, right, you could be potentially hedging a position, if you had a short position or something like that, then you go ahead and buy call options to kind of like hedge that position.
But most people, you buy a call option, you’re buying it because you think that stock price is gonna go up a bunch, okay. Now, these expire in January 2023. So I have approximately two years in like two months, roughly right? before these expire, I think they expire, kind of like the mid January time, like I think is around January 20.
If I recall, okay, the strike price very, very important is $20 on the stock, hey, the strike price that I went ahead and bought out. Okay, so essentially what that means if Dropbox is under $20, in January 2023, so many, I’m still holding these options,
I’m going to lose all $21,000 of the money, okay? So it’s not like when you buy a stock straight up where you buy stock, and it’s like it needs to go to zero for you to lose all your money.
This totally different scenario. Literally, if the if the stocks under 20, I’m losing 100% of that. $21,000. Okay, the premium I paid yesterday was $4.70. So a little under five bucks k. Now for this video, we’re going to make it simple. We’re just going to say a paid $5, which is a worse price.
Okay, that’s probably what I would have had to pay. Let’s say today if I was buying with the stock up, but we’re going to use it for simple sake numbers.
Okay, so let’s say I paid $5 All right. So keep in mind, I can sell the options at any time. I don’t have to hold these till January 2023. If I if I don’t want to. So let’s say the stock shoots up like crazy over the next, let’s say 12 months, okay?
And let’s say well, you know, we’re in November of 2021. Now, okay, and I’m holding these options and let’s say drop boxes now. 35 $40 a share, okay? The premium I could get on that would be substantial.
Okay, let’s say for instance, a stock is at $35 a share, right? $35 a share the premium I could get on those $20 strikes, I’d probably be able to get $30 premium, okay, like a crazy number. Okay. And obviously, when you pay, you know, $4.70 like you’re looking pretty darn good.
Okay, so I could definitely possibly sell these off way before January 2023. If I choose to, as of today as of recording this. I’m going to probably hold these till January 2023.
Okay, that is the plane going in. Like I said, if I want to get out if I find something better out there that I want to put some money in a year from now, whatever, I can always make that move, especially if this if the stock goes crazy over the next year or so, which is definitely a possibility with this one.
Okay, but my intention is to hold these Intel pretty much almost they expire right now. $25 is a breakeven on this. Okay, that’s my brain. Even so I’m going to get my money back. Now, I will say that would be sad.
I would be, you know, I would be super disappointed if all I did was get my money back with this one. Okay, keep in mind, I got a tie of $21,000, right? To make no money over, let’s say two plus years, two years and two months, that would be extremely disappointing.
There’s no way I want to get beat out by a savings account. Right. So I would be extremely disappointed. I obviously don’t think that’s going to happen, but it it could.
Okay, once again, if the stocks under $20, I lose all $21,000. I just put into this. Okay. I think that’s extremely unrealistic. I think it’s an extremely unrealistic that I lose all my money on this position. I think it’s extremely unrealistic that I basically breakeven on this position.
Let’s put it that way. Okay, here’s why the stock’s $19 today, right? It’s not even that dang far away from basically where I needed to not lose money or to breakeven.
Okay, then keep this in mind. Okay, this company is growing ETS very nicely, and should continue to grow ETS very nicely over the next several years. Okay, from 50 cents last year to 89 cents expected this year, to roughly around $1. Expected next year. Okay.
So you put that together, and it’s like, okay, things are going really well, their revenue wise company should do around almost 15% revenue growth this year, next year, they expect to do around 11% revenue growth. So those are very nice numbers, right? In the company trades cheap.
That’s not like I’m paying an arm and a leg like all these others, Neil 98% of these other stocks out there that are growth stocks, right? This one’s at a 24 P, it’s as cheap as cheap gets in this type of space. Right? So a 20 P, you got a growing company.
I mean, in order for me to lose money on this, the entire company would have to fall to pieces, I mean, just completely disintegrate. It doesn’t make any sense, the company would have to start shrinking revenues, the epcs would have to start going down in a major way, there would have to be no belief from Wall Street at all in the stock it you know, it’s super unrealistic.
I would say there’s less than a 10% probability less than a 10% probability that this stock is under $20. In January 2023, unless maybe it went up to $100. And they do a five to one split or something like that.
Okay. I mean, that is so dang unrealistic. But it is a possibility. As with all things in stock market, you always have to take everything into account. What if this happens? What’s the chance of this happening? I would say that, that probability less than 10%, okay, now, why not just go $21,000 in the stock straight up? Okay.
So keep in mind, if I bought this stock straight up, let’s say the stock was at $20, which remember, in the call option scenario is $20. Or under, I lose everything right? At $20, I still make money in the stock rate, because I had, you know, 18, some change 19 $21,000 in, I made money, it’s a very small amount of money, right? But I made money at $38.
So let’s say stock goes to 38, right? Because let’s say you know, 1819, somewhere around there and say I pay $19 for the stock straight up, I to x my money, right? That’s one or 2x my money, I’m looking really, really good and keep mine I’ve mostly just been buying shares of Dropbox, because because I love the risk reward with this one.
And I think that’s, you know, pretty high probability of the stocks two x’s or more over the next few years. And so that’s what I’ve been doing essentially. Okay. But here we go with the call options. Here’s where things get really, really interesting. Okay. So 20 to 50. Ish, somewhere around there, right? I would lose 50% of my money. That would obviously be that, okay. $25 is my breakeven on those call options.
Okay. But we’ve talked a lot about the negatives in regards to how we could lose money. But remember, I’m getting in this because I think I’m going to make a lot of money, right? Here’s where I start making a lot of money, okay.
$30, at $30. I will have $42,000, essentially, okay. If the stock goes to $35, I will have $63,000 if the stock goes to $40 between now and January 2023. And this is assuming it’s actually there in January,
January 2023. Keep in mind if it went to 40 in the next year, and I still got a year till expiration, that would make way way, way, way, way more money than this. Okay? We’re just assuming in January 2023. It’s at those prices. Okay, at $40.
I have $84,000. Now, remember, we only put 21k. Okay, and at 40. I’m at 84,000k. Now, where I think the stock is going between now in the next couple years, I think the stock is going to 45 to $55. Okay, that’s where I personally believe it is going okay. At $45.
I’m at $105,000 at $50 stock price at $126,000 at $55 a share on that, you know roughly around $147,000. Okay, that’s where I believe this talk is going over, you know, let’s say the next Couple years. Okay, so, needless to say, I should do really, really well, if things worked out the way I think they’re gonna work out, okay.
Now if those things go even better, which definitely has happened with stocks I’ve been in in the past where it’s gone even much, much better than I ever expected, right Tesla, I never expected that one to be nearly up as much as it is today.
I mean, maybe in five years from now, but my goodness, okay, so 60 bucks, so say it goes to 60 and then $168,000. And remember, my capital is only 21,000. Right? And at 65, I’m at $189,000 on a $21,000 investment.
Okay, so needless to say, if this stock makes some major moves up over the next couple years, I’m looking really, really good. Okay, obviously, we talked about it, I could lose all my money, if the stock does, nothing goes down, something like that.
But man, if things go the way, I think they’re gonna go, the like, I’m gonna, you know, I’m gonna get a pretty good ROI on my money a lot better than if I just bought the stock straight up. Okay.
But with that being said, Will I buy more Dropbox call options, because I got this position and you look at those gains, I could potentially get it the stock goes to where I think it’s going over time, you got to say, Man, maybe maybe load up on some more, maybe buy another 21,000? Another 2.1 1000? Probably not. Okay, I’ll probably only buy shares from here on it. Okay.
And the reason is, essentially, remember, there’s a risk, right? There’s a risk, there’s obviously the chance I could lose everything in this right? That’s the danger with with obviously call options, right?
So I have to always think about not just a reward, but the risk going out, okay, I buy shares of stock, I think there’s an extremely low probability I lose money on the stock over the next five years.
If I hold it for five years, right? I think there’s an extremely high probability i 2x 3x, if not for x my money in this stock over the next five years, if I hold this stock, that’s really, really attractive versus obviously in a call option situation I hit I’m under the gun.
Okay, I have two years in two months. Okay. I need everything to work out in the next two years, two months, Wall Street to start getting the stock? Like, what if? What if? What if the company executes phenomenally? What if everything goes great, they grow.
And the four p goes down to seven. And you know, they’re making money hand over fist, the cash flows are crazy, but Wall Street doesn’t care. investors don’t care.
Like I don’t want to buy Dropbox no matter what, what if that happens, I’ve seen it with other stocks before that could potentially happen, right? That’s why I have to limit risk. It’s all about the risk reward.
I got some huge reward potential here. But I can’t go too crazy with it and all sudden have 50,000 100,000 in terms of capital I put in, because then we start getting into some territory where it’s like, okay, now I put in $50,000 into this $100,000.
And I could go to 00. That’s, that’s a little much for me personally, in terms of taking that level of risk, I’ll take this risk, but not going to like 50k 100k, I’m good, where I’m at with the call options, but I’m absolutely interested in buying more and more shares of stock, because that risk rewards just way too crazy to ignore. Okay.
Now, if we’re talking about options trading in general, and we’re talking about another move I could potentially make in regards to Dropbox outside of call options, it could potentially make sense for me to sell put options on Dropbox, okay.
And here’s why I already feel Dropbox is extremely cheap stock, okay, I feel like it’s a deal and a half anywhere remotely close to 1819 $20 a share, I feel like it’s like stealing money essentially. Okay.
And so I already feel like that. Now, if I so essentially put options, okay, I get to make premium on that. And if the the options go up over time, I don’t have to pay out that money. And I get to make premium make premium.
Now keep in mind, if the stock price goes down, I get to buy a bunch of shares for a much cheaper price, right? Because obviously, if the stock goes up 15 I have to pay out for that essentially, okay, but I’m getting the buy shares for let’s say $15 a share or something like that.
So when you kind of look into, you know, selling put options for somebody, in my scenario, where I’m looking to buy more and more of the shares, it can make a lot of sense because I can make the premium. And if the stock goes down, that’s fine.
I’m committed to buying it. That’s fine. I’m more than willing to buy Dropbox shares if it went down to 16 or 15, or 14 or 10, or something like that. Super unrealistic, but I’m here for the stock if that was to happen, obviously.
Okay, so yeah, if we’re thinking about anything else, our options related I couldn’t do with this one. It’s all about selling put options, because that could really benefit me in a massive massive way with the type of you know, situation.
I’m in with the stock Hey, hope you guys enjoy this video. As always, if you don’t mind smash, that thumbs up button helps YouTube channel out mass really lets me know you guys enjoyed a video like this.
We’re actually talking about some options. I hardly ever talk about options on the channel. But hey, I did a big move. And I thought this would be a great time to just go ahead and talk about stock options. A little bit.
All right, if you want to join my private group, there’s a lot of reasons to basically join in there. Okay. But one of them is I actually have an option section where I teach a ton of different strategies in there.
If you’re ever looking for options, we actually have probably one of the best options. Definitely the best option trader I’ve ever met in real life he’s one of our seven figure coaches you know he’s made more money than anybody I’ve ever known from options like guys just on a whole other level.
And yeah, we actually have an options only chat in there as well was we have a lot of very good options traders in the private group. So if you ever wanted to, you know, obviously we’re not focused on options in there but that’s just another like piece of the puzzle. So if you’re ever interested in that, definitely check it out.
And like I said, anybody who signs up for two year essentially you get a month free of one on one coaching with a six seven figure coach case a pretty epic, thank you for watching and have a great day.