Any follower of this blog knows that I don’t advise messing around with put or call options, as it’s better to be outright owners of shares versus borrowing shares to guess whether a stock will go up or down in one months time. Plus option traders can lose their shirts pretty quickly. With that said, it’s worth knowing that the third Friday of each month is often the final day options traders can exercise their positions (buy or sell) and the week leading up to that moment can often get a little hairy on the market. Lots of amateur Robinhood traders are experimenting with these high risk short term bets and big money players can see where the retail pool is putting their speculative money. They take advantage by adding to short positions themselves, which in some cases will drive down share price for them to buy up cheaply. The opposite market manipulation can also come into play with an eventual short squeeze, which will drive prices back up. The way you beat this bipolar game is to do the following:
- Own shares of companies/avoid options
- Dollar-cost-average and buy steadily
- Be opportunistic when there’s a dip
- Have patience and think long term
Here are 12 good deals for wealth building:
Shift (SFT) $478M
Sierra Wireless (SWIR) $703M
Viant (DSP) $730M
Digi (DGII) $816M
Perion (PERI) $954M
PubMatic (PUBM) $1.9B
Magnite (MGNI) $2.9B
fuboTV (FUBO) $3.5B
DoubleVerify (DV) $5.1B
SunPower (SPWR) $5.4B
AppLovin (APP) $39.5B
Trade Desk (TTD) $53.7B
“We’re not that much smarter than we used to be, even though we have much more information and that means the real skill now is learning how to pick out the useful information from all this noise.” –Nate Silver