A QUICK NOTE OF WARNING: Next week I will be OUT OF THE OFFICE and any mail that you get will come either from the holographic version of me… who looks like this…

Or from Rebecca, my new editor, who has super cool purple hair.

THIS note, however, is from me:

Tom’s team has worked for a year to design, build, program, backtest, code, and configure his brand-new basement machine to target trades that could give us the most aggressive returns, like these prime examples…

517% 609% 857%978%1,792% even 2,547% – all in less than a week!

With gains like these, even a small stake of $500 could make you thousands of dollars from a single trade.

Oh – and I’m actually working with Rachelle, Tom’s right-hand woman, right now to get you a super juicy secret about this machine that no other e-letter is gonna get. I should have it tomorrow, maybe. Stay tuned.

Liz here, getting all caught up in other people’s drama. My husband and my son continue to fight over who let the pigs out in Minecraft, AND – remarkably – Hartley the possessed man has been released from jail. In between hisses, my husband said he was delighted.

“SSSSSSS! McNulty, I’m going home tonight, man. sssssssss!”

By the way, it turns out that Hartley has 19 (NINETEEN) children on the outside. Do they all hiss, too, like nineteen little snakelets? It’s a terrifying picture.

In less terrifying news, we took off 60% this morning on CJ’s X puts. Followed immediately by 123% on the second half, which shot up as I was writing this.

That was, of course, a direct slap at Mark’s earlier long X trade…and now Mark is back on his feet for round two.

Mark’s seen some big-money action in steelmaker CLF over the weekend, and he’s got calls for you right here.

Grab them now. SSSSS!

Sometimes, Nobody Wins The Argument But Everybody Gets Paid

So first of all, CJ had those undeniable, juicy profits on his X short – which likely has something to do with spot prices dropping in the first quarter. But all steel plays are not created equal.

Barron’s (which Garrett loves to hate, but which has good stuff sometimes) highlights a distinction that means maybe Mark and CJ both have room to be right:

“Falling steel prices would drag down earnings, but Cliffs first-quarter results showed that there is a difference between spot and contract commodity prices. Cliffs pricing stayed strong even as spot prices weakened.”

Spot prices are what steel costs now, and futures (contract) prices are what it will cost later. (We’re just dipping our toes into futures here in Trading Today, and we had a wild ride last week with some completely un-trackable micro gold trades from 8-Ball.)

CJ’s X play banked on bad spot juju, and Mark’s CLF play bets that good times are coming in the future.

Cleveland-Cliffs Inc (NYSE: CLF) had great Q1 earnings, with net profits of $801 million, up from $41 million last year (and 10 cents more per share than analysts expected). They’re the largest iron ore operator in Minnesota, which means they’re Minnesota nice. (The CEO also expects them to generate record free cashflow this year, somewhere in the neighborhood of $2.9 billion.)

However, they’ve been plagued with some troubles of their own recently: they are closing down two key mining facilities on May 1 amid “a royalty dispute and changing operational strategies.” (The shutdown is supposed to last only four months, but we shall see.) That’s pushed them down a little bit and Mark thinks it’s a good time to pounce.

“The stock is softer today and it’s a good opportunity to swoop in and buy calls,” he says.

In addition, he sees big money moving and IV telltales: “We saw a big bull spread in CLF on Friday,” he says. “Realized volatility is above implied volatility, and the earnings are done.”

That all translates into some relatively cheap Dollar Slots for us. Here’s what to do:

DOLLAR SLOTS:

Action to Take:

Buy to Open CLF May 20, 2022 $28.00 calls for 2.10 or better.

Don’t forget, I will have secret intel for you on Tom’s basement machine, likely sometime tomorrow. (My people are talking to Rachelle’s people, which is a fancy way of saying I am talking to Rachelle.)

You can go watch this to see the details Tom’s released so far about the machine, but I’m determined to get you more. To go higher, farther, deeper. (You’re welcome, Andrea.)

Tom actually used it to spit out two Mega Trades earlier today, and I asked when the next ones would come out, but alas, no one could tell me.

“IT WORKS ON SIGNALS,” Rachelle said darkly. “There might be another one this week – or you might have to wait till next Monday.” Well thank you for that.

I’ll be back tomorrow with a new CJ trade. SSSSSS!

Hang loose!

Liz

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