Embarrassment Of Riches
Investing can feel confusing sometimes, especially after a huge rally.
But if you should get it right, you could have an embarrassment of riches.I’ll come right out and say it. MAPsignals, has had a great year. We’ve found some of the greatest stocks, man-handled the market, and received more positive feedback than ever. Better still, people like you have reached out with encouragement.
That’s why as we head into Thanksgiving, we’re going to take a moment to say thanks to everyone that’s taken this ride with us. We love making money in the market, but being able to make an impact is the true embarrassment of riches.
We wish everyone a healthy and wealthy holiday season. And as markets break higher and higher, we wanted to see how our Big Money system is doing this year.
Now, let’s showcase some recent highlights. Let’s start with MAP View picks in 2020.
MAP Stock Picks In 2020
I needn’t remind you that 2020 has been a crazy journey for stocks.
Stocks started taking the stairs up in January, then took the elevator down in March. Then they blasted off like a rocket in April. My head spins just thinking back on it.
So, how did MAPsignals perform during this terrifying roller-coaster? Let’s check out the MAP View performance for all weekly picks from January – October. Below are the average returns for each weekly pick (43 in total), hypothetically held from the date profiled until 11/23/2020:
*hypothetical performance that may or may not be possible to achieve
Look- beating a rocket ship market is worth a “thanks.” But, before we get ahead of ourselves, let’s look over the profiled stocks on the Top 20 reports.
Warning, it’s an embarrassment of riches.
MAP Top 20 Profiled Stocks Performance
You see, our Top 20 lists encompass our 20 best stocks in our research each week. This is where the outliers can be found . However, some people don’t have time to sift through a list of 20 stocks. So, we make an effort to showcase two stocks that stick out to us on each report.
These could be names we’ve known over the years or they could be new stocks coming off a great earnings report for example.
You’ve likely heard E = MC². But, here’s another handy formula…
Big Money buying + Great stocks = JUICE!
Below is the performance for each profiled stock on the Top 20 report from January – October hypothetically held until 11/23/2020:
*hypothetical performance that may or may not be possible to achieve
That’s the average performance of 86 profiled stocks vs. the S&P 500 (SPY ETF). One might ask: “how did MAP outperform the SPY by 70%?” Well, two of the top stocks are below…they are also frequent Top 20 names.
First up is The Trade Desk (TTD). Those green signals are each time the stock was on the Top 20 report:
Source: MAPsignals, End of day data sourced from Tiingo.com
And the next stock needs no introduction, NVIDIA Corp. (NVDA):
Source: MAPsignals, End of day data sourced from Tiingo.com
Finally, let’s do a quick rundown on our options picks.
MAP Options 2020 Embarrassment Of Riches
Recently we’ve been getting positive feedback on our option ideas. This is largely because we had bullish wagers on beat-up Retail names last month.
Showing performance in options can be tricky. To make things easy, the way we do it is to assume that a trader held the option until expiration. While not practical for everyone, it’s how we’ve always found the biggest opportunity.
For example, we positioned for a market pullback in January. Our data signaled extreme buying in stocks that wasn’t going to last. We performed a duck test for confirmation. Our suggestion was to not add risk. Our option trades around that time were geared for a pullback…i.e. selling puts because we WANTED to own great stocks at a discount.
If you get stocks at fire-sale prices, odds are you’ll feel that embarrassment of riches when the market bounces back. You’re about to see why…
In 2020, we’ve showcased 34 option ideas that have reached expiration (this doesn’t include open ideas). The hypothetical performance of those are calculated up until expiration:
But, this only tells half of the story. When we profile options trades, it’s usually on outlier stocks. These are the best of the best as far as we’re concerned. So, if we make a bet to potentially own a stock lower, it’s because we are happy buying at those prices!
The same goes for upside calls. If the stock ramps past the call strike…what if you took ownership of the stock after expiration?…and held.
Mega juice happens!
Let me clarify: if you make lowball offers to own a great stock, and then you get put in (buy the shares). Look at what can happen…
*2020 expired option ideas as of 11/23/2020
It’s all about putting the odds in your favor!
The above hypothetical performance points to the fact that there is opportunity when you hold great stocks. That’s where we spend all of our focus.
Here’s the bottom line: as we approach the holidays, take a moment and give thanks for family, friends, and health. After a year like this for stocks, someone may ask you about the market.
You can tell them how the market can embarrass you sometimes. But that’s a good thing when you’re embarrassed with riches.
Happy Thanksgiving everyone!