Note: Tomorrow night, Jeff Brown is turning his attention to a pair of key technologies: artificial intelligence (AI) and crypto.
Even more important, he’s using AI to spot opportunities in the cryptocurrency space. As markets – including crypto – get choppier, that’s not something you want to ignore. Vitally, Jeff thinks the current pullback will merely be a springboard to the next crypto bull market.
That’s why he hopes you’ll attend his AI-Crypto Fusion event tomorrow night.
So if you want to get your hands on Jeff’s next buy-and-hold pick… plus a bonus report outlining the next few years… then go right here to add your name to his event list with a single click.
Just a month ago, Meta Platforms (META) was pushing $740.
It was a big change from October 2023 when the bull market began. Back then, the social media giant was trading at just $280.
Go back to a year before that, and META was struggling to hold the $88 level.
A string of lackluster earnings and out-of-control expenses saw it take an absolute drubbing.
But as META turned its results around, it caught a ride on the AI boom. From its October 2022 low to its February 2025 high, META rallied a massive 742%.
In doing so, though, it became way overbought… It rallied 26% in a month earlier this year.
Yet we were able to use that to my subscribers’ gain… They banked a 134.8% profit in just two days. Soon after, they captured a 25% gain in just a day.
So let’s see how those trades unfolded…
Two Trades… Double Profits
The chart of META below shows its rapid rise to its peak on February 14. That move put META into overbought territory and made it vulnerable to a fall.
The Relative Strength Index (RSI) tracked a long way into overbought territory (upper gray dashed line). When the RSI finally reversed as buying momentum waned, that pulled META sharply lower.
Check out the chart…
Meta Platforms (META)
Source: e-Signal
META’s attempted rally came after hitting its 50-day Moving Average (MA).
But most other members of the “Magnificent 7” were already trading well below their 50-day MAs. The market questioned their lofty valuations with the economic outlook looking increasingly shaky.
I expected those same factors to weigh on META as well, leaving it vulnerable to “catching up” to its peers.
So we bought a put option on February 26 to capture that fall. A put option should increase in value when the underlying stock falls.
META opened slightly higher the following day. But negative momentum in the RSI soon pulled META sharply lower.
And with our position in good profit, we took our profits off the table on February 28, clocking a 134.8% gain.
But we weren’t done there…
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Down… and Up
With META down 15% from its mid-February high, the down move soon looked overstretched. That was setting up META for a potential bounce.
Plus, META was trading around the $630 level (green line). That was the same level it rallied off when it made its major break higher earlier this year.
To capture that bounce, we bought a call option on March 4. A call option increases in value when the value of the underlying stock rises.
And that is how things panned out…
Take another look:
Meta Platforms (META)
Source: e-Signal
With META breaking higher the following day, we closed out our position for a 25% gain on March 5.
To be clear, we earned these gains using options. Options use leverage, so they magnify your gains and losses compared to trading shares.
Yet there’s a reason I love trading options in these volatile markets… I always know the maximum I stand to lose if things don’t go my way. That’s the premium I paid for the option.
That can be especially valuable when markets are whipping back and forth.
And as these two META trades show, you can use options to generate outsized profits in a short time.
That means options are going to remain one of my favorite ways to profit as volatility continues to ramp up in the coming months.
Regards,
Larry Benedict
Editor, Trading With Larry Benedict