Hey guys and gals,

Look at this insane move on VERU…

It gapped up roughly 150% from $6 to about $15. Now, that sounds exciting…

But unless you’re a day trader or love scalping…

Volatile penny stocks like this are too risky to dive in (especially for folks that aren’t experienced). 

This is a massive spike within a short period, so buying the stock would be too risky.

Typical Call or Put options wouldn’t be a good idea too, because this volatility would send the premium prices out the roof.

So… 

What’s the best way for me to play this?

Vertical Call Spread.

Now, options aren’t typical with penny stocks. But when it’s possible…a bear call spread is a nice strategy I like.

What I’m doing is buying and selling a call option at different strike prices…but within the same expiration cycle.

Why?

Because it’s safe — I can reduce risk while still aiming for profit.

In this case, I sold the $12.50 Call and bought the $17.50 Call option.

The entry was $1.60 which means I’m at risk of losing $3.40 per contract. And I did 10 contracts with Friday as the expiration date.

What are the possible outcomes?

Well, if the stock price is below $12.50, I make 100% of the $1.60 entry. 

And if the stock price is above $17.50, I lose 100% of the $3,400. 

The bottom line is…

I’m using $3,400 to try and make $1,600 by Friday

I’m also relying on the fibonacci retracement here, so if you’d like a detailed lesson — with real-money examples…

Check out this Fibonacci lesson I added to your RagingBull dashboard.

What do you think of this trade? 

Can I get your attention for the next 3 minutes? 

Because this is a timely reminder I think EVERY trader needs to hear.

You see…

One of the fastest ways to burn your money is by allowing your emotions to get the best of you while trading. 

In my opinion, greed definitely ranks high up there in any trader’s enemy list.

So if you feel the need to…

“Hold just a little bit longer and profit more”

Chances are you’re guilty (and you need to stop listening to that voice). 

But don’t worry, though, you’re not alone.

I’m guilty sometimes too, and so is every other trader out there.

But…

The best way to fight this enemy…

…is to learn how to stay in control. 

You have to get better at two things;

1. Letting go of losers

Yes, losing trades can mess up your mind and possibly affect your performance.

But continuing to stay in a position that’s failing is even worse. 

In this business, hope is not a plan.

So, the logical thing to do with a position going against you is to exit before things get worse. 

Dump it. Cut it. Move on.

There will always be another trade. Like I always say…

A single trade will never make you rich, but one bad one can wreck your account

The other thing you can do is…

2. Taking your profits when you can

Every trading day I wake up, my goal is to grow my account. 

That’s what we all want — to stay profitable. But to do that, you need a plan. 

A good one. 

And part of a solid trading plan is the profit target. This is the price point where you’ll take your gain and exit a trade.

Whenever you identify your setup and figure out a good entry point…

Try to take profits when you hit your target

Why?

The market is crazy and can flip on you…especially when you don’t see it coming.

Developing the discipline to take what you can and exit will save you from a ton of avoidable losses.

Remember, the stock market will still be open tomorrow.

That being said…

An effective way to shorten your learning curve, improve your skills, and level up in your trading journey…

Is to learn from a more experienced trader.

The goal is to broaden your knowledge, so you have the confidence to make your own decisions.

That’s why I’m LIVE every trading day in my private chat room.

I’m sharing my screen and teaching folks valuable trading lessons I’ve learned over the last decade.

And the best part is I’m sending out trade alerts whenever I spot opportunities

They get notified before I buy, sell, or even adjust my position.

…so if this is something you’d be interested in, then come trade with me live.

Few things get me as excited as penny stocks do.

Why?

Because the volatility always keeps me on my toes!

Now, that volatility cuts both ways… but if there’s a coming catalyst event that holds the potential for a positive bump on a stock, I’m paying attention.

A big headline could move a $2 stock a lot more than it would move a $200 stock – usually.

I came across a headline like this recently, and it moved me to take a small position in a little-known electric car company.

With a big contract announcement looming, I’m hoping the stock price is going to move up as this company positions itself in the “fast lane” as it chases down TSLA.

The company is Mullen Automotive (MULN).

And to be honest, there are actually two catalysts that could have a huge impact on the stock price…

1. They’ve promoted a former TSLA executive to a significant C-suite appointment, and…
2. The CEO says they are about to announce a huge contract order from a Fortune 500 company.

On these bits of news, I jumped into MULN at $3.06.

I have a small position in MULN at $3.06 looking for middle $3’s to exit. Ultimately I think it could go to $4, especially with the recent insider buying and outstanding ‘big contract’ catalyst looming, per the CEO. 

My goal is to get out somewhere in the mid-$3s.

However, I think with the strength of insider buying on top of these catalysts, my opinion is that it could go to $4.

This is just one trade… I build a daily watchlist of 5-10 penny stocks just like this one – along with details on why I like the trade and what I’m looking for – and send it to every member of JasonBondPicks.

Click HERE to see more trades just like this one every trading day!