BEST IPO TRADING STRATEGY (2019) *SECRETS REVEALED*
Hey everyone I'm Jeff bishop joined today with Jason, Bohn cofounders. Of Raging, Bull calm, and today, we, have been Sturgill. Who's introducing. IPO. Payday. This is one of the services I am so excited about it we were talking about this for a long time Ben, has developed, a system, for, predictably. Making, profits, with IPOs, and we all know IPOs. Can be truly explosive. Investment, opportunities, so he's got a great system to identify the best ones and, exactly. When, to get in and which ones to avoid so I'm so glad to have you thanks today I've, known Ben for awhile from. New Hampshire he, used to be a professional, basketball player overseas, and he's, very easy to spot in New Hampshire. Father. Of three formerly. A professional, basketball player, IPO. Expert, and you're bringing Raging, Bull this, revolutionary. System. To. Stalk. All IPOs. And then, actively, trade them and you have three. Different, strategies within. Each IPO, that we're gonna get to take advantage of that's right you know there can, be hundreds, of IPOs that come to market every single year that's, one thing I just never knew I'm, in the markets all the time I had no idea there was that many IPO, is always coming out we, only hear about the big ones right here about the Google's of course beyond. Me and uber and things like that but, you never hear about the smaller ones you know you're right Jeff there are a lot of IPOs that come to market in fact hundreds. Some years that come to market and yeah there's the bigger names that come that people hear about but, there's also a lot of companies that nobody, hears about that come to market or there's huge profits, to be made so, there's a an. E retailer. Out of Africa, you know here's an example of one that just jumps, up and there's another one as a financial company out of China again, you look at this chart and it, just jumps, right up right, because there's these opportunities, with these IPOs at different, points, there's the initial week where the company really, wants to see the stock do well and you see you get pumped and you can see these things jump early, on but then you're. An options guy no you know this the options, market opens, up right and then there's even more opportunities. To profit, when you see where these stocks are gonna go up or down but then there's a third period, right a third leg, to this strategy, when, the lockout, period ends which is when all the insiders. Who've been waiting the whole time to make a profit are able to sell their stock their stock shares and when they do we. Can jump in on the puts and ride that down when all of the supply comes to market and that, stock starts to go down afterwards. Right at that lockup period but here's the thing you got to know when those happen and what you're gonna do about them what's the problem I'm always too late to the party I'm. Busy I don't keep on top of what's going on and I have no idea which, are the best ones to be in all the time so I'm looking. At it after the fact of a stock that went from five to twenty or thirty and like now I missed, that move where was I where. Were you that's right I was on top of it that's right that's what it went when bench orders this strategy, I think that's what excited, me the most first, of all I wasn't aware that there was hundreds of IPOs per year and I, didn't, realize that the true potential wasn't. Necessarily, just in the googles or the beyond meets or, even new Hoover's but, it was these, stocks that you mentioned I mean let's look at the charts here real quick these, are look at the explosive.
Nature Of these trades huge, potential early on in the trade but, then you were telling me Jason. It's not just the first week where that stock in the excitement, around it drives it to extraordinary, levels it's, when the options, open up a week or two later that you can then get the leverage with the calls and continue. To play that hype until. The lock-up period when, the, inevitable, pullback, happens, because the. Insiders, are so excited, to move on and the supply is too much for the market to handle and the crashes, can be huge in that in that period of time these, puts that, you're buying they can go up five hundred percent seven hundred percent a thousand percent I mean these look at the size of these drops, on. These stocks that's, right the thing is Jay you gotta be ready for those you know those things are coming so that's one thing in this system that I think is so vital, from the get-go is the calendar right, and that's one of the things I really want to alert members, to in the service is to let them know hey, heads, up email, text this, moment, is coming for this stock and we need to be ready and so, when you can be ready the second thing as you said before the basketball I always. Had to have a game plan right I couldn't just look at my calendar okay who we playing today you gotta know who you're playing and what you're gonna do about it and so that's the second thing is I want to be able to send this game plan and a simple game plan right, not with all this you know information that you don't have to do with but just simple, okay this is a green I'm jumping, in we're getting in on this one because everything, looks good right this is a yellow or maybe this is a neutral I'm just gonna wait we're gonna wait and see what happens or this is a red, don't touch it before you mentioned uber right, no, one's made money on ubers IPO but, it's still a name that everyone has known and so you're thinking hey I do a rideshare maybe, I should jump in on that it's, the research I do it's, reading the 200-plus, page prospectus. That comes out when these things file then no one wants to read but I want to read that so I can know what to do and make sure you get the right game plan in place to be able to make profits on these as you said going, either way and the first week going up after, that one options open up or when insiders, try and get their payday their cash out we're gonna get our payday oh, stop. Right there I don't, ever want to hear 200 page prospectus, again I don't know about you Jeff but running Raging Bull takes a ton of time and then, trading, takes, a ton of time as well so we're overwhelmed. With what we do day to day 200. Page prospectus. I'm glad you're doing it I'm sure it's good you, do it yeah and. We'll, leave it right there and I think that's what's so exciting so we know you're doing the research but, again the.
Reason We're so excited to bring this to Raging Bull when, you showed us that there was several. Hundred I, mean hundreds, of IPOs coming, to market every year there's, only a couple hundred trading, days a year most people don't know that so, that means every single week on average there's. Several. Opportunities. And your, calendar, lets us know all, of them, not just the googles or beyond meats that we all see on TV and in the news but, every single one and some, of these are extremely explosive. I mean let's look at a few of these charts real quick I didn't, know about this one I should, have I'm a small cap guy look at the move the stock has made and, how about I mean what was this company JM, ia what do they do this is a Chinese. Financial. Company, right no one knew this was coming to market but as you can see like, IPOs, do this thing is volatile, and it's you yeah, a huge move and and, TIGR. Look at this movie did. You know about TIG art I would have bought it if I knew that yeah that's right again same, situation, here same pattern, right, a lot of volatility boom, jumped up profit to be made yeah let's talk about the concept, company comes to market, they, come to market when they think their company's going to do well they they want the price to go up everybody, does insurer and most, people don't know that you, can't really short a stock at. The IPO which means try to bet against, it so there's, no, resistance, really to it going up if they have a good story and in, the, ploy, frankly for a lack of better word pipe surrounding. The IPO is big enough you know there's demand and demand exceeds. Supply price. Goes up and these are great examples of that I didn't even know that they happened, and there's, there's a couple hundred, of these every. Year so yeah you're gonna trade the beyond meets right or, the googles or the Ebers but, these. Are juicy, these are explosive, moves your, calendar lists them all so, that volatility, right there when you showed me that I thought okay if you, said J I'm gonna break down a huge, long research report, on this 200, page prospectus, for you I would, be like okay no I don't have the time to do that but, your calendar, has, a stoplight, on it and the, stoplight, is a summary, of all your research and it is either going to be green yellow. Or red a few. Weeks prior to the, IPO coming to market and then the morning of you said you're gonna send a text, message that's, right reaffirming, that stoplight, signal, that's right tell me about that well there's some important, moments that come along right leading up into the IPO date and I'm, staying on top of each one of those what the range is what the price is but, really want to simplify, everything as you said who's. Got time for two and page respect us besides, me no one else does I want to be able to do that work synthesize, all that information, into a game plan if you don't have a game plan if you're not on top of the schedule how you gonna make profit from these things so, as you said yeah I'm gonna send out that alert that text that email alert to let you know how, I'm trading this IPO in, the first week as you mentioned right where there's no shorts available, but there's high potential, for running based on certain factors.
And Then beyond that once. The options, market opens up I'm gonna have more. Signals. Right green yellow, red to say hey here, is a stock, just, like the ones we mentioned before that no one had heard about right, that in the first weeks and months that can really jump and I'm, gonna let folks know about that in, the service with, an alert and on the schedule as clear. As day well that's, really important to point out here the, IPOs, are listed on the calendar, the. Second, phase of your strategy, is trading the options, because they don't start trading with. The IPO they come a week or two after so, your calendar, lists that and, you're. Letting us know with. Those options, using. A stoplight if your green yellow or red I love, that because I take a quick glance at the calendar and I know TIGR, is coming and you're. Letting me know green, light that means you. Intend to buy it and then, the morning of the IPO you, reaffirm, with the text message it's still green light that way I know you're. Bullish on tigr, that day thirty, minutes before it starts trading to me as a busy professional and. Trader, I can, use that information to, make decisions more. Importantly. You're the options guy a few, weeks later he's, doing the same thing the calendar, shows when the options come to market for all of these that's hundreds, of trades each year, yeah and I'm. Assuming, the calls can be really juicy they're like their leverage on the stocks ladies these stocks go absolutely, crazy sometimes, and you want to be in the calls but. I can't stay on top whether there's so many all the time and there's no organized. Calendar, out there for when options, are coming to market so the fact that you're putting us together for people is truly revolutionary no one else does this and the, fact that you've got the easy red. Light green light that's giving me a quick do I want to look into this more no so, the fact that you've done the research and tell me what you're planning to do that, gives me the heads up on which ones I'm gonna think are more important to look into you, mentioned you know that option, two before of the Amazon of Africa, right as a company comes to market almost nobody knows about it but then I would have had the green light as those options, opened up because I know you love options you could have made a lot of money on those calls but even if you just want to trade stock you know the stock doubled, it jumped, and anyone in there on the green light would have made double, their money's right I love the fact that you trade both stock, and options, in a service so no matter people are comfortable with options or just stocks you give them both opportunities. Or service that's fantastic, sure yeah for folks that want to keep it more simple and just trade the stock well then that that option is there because these things are volatile, that's what I'm gonna be doing I'm so excited about that and I know you're gonna love buying the calls I mean, so what, we have so far is the, IPO, date, we're, getting a red light or a green light in advance, notice but also a reminder just, before it starts trading of what you're about to do and if it's green you intend, to buy so, that's, exciting you're buying the stock on the IPO day and there's, a lot of volatility and it can go up a lot so the chance for explosive, returns is right, there and, then a few weeks later the, same thing is playing out on the same company, but with calls, because. We're still bullish, there's, a third phase to, the trading here might.
Have Been in and out of the stock already might have, reboard. The option, when those options become available but, there's a third phase talk to me about the third phase well, again it goes back to the calendar knowing, what's coming so the third phase something, is interesting about IPOs, is that there's already insiders, people that own the company, and there's, a thing called a lock-up period, so once, it comes to market that lock-up period extends, and then when it ends, the insiders. Can sell their shares now. It's also I've been on the wrong, end of that too many times I'm. Not looking out for the day and I'm on the wrong end of buying the shares they're selling that's right that's right because what happens is that you know there's a certain amount of shares that come to market with the IPO when, the lock out date ends, all the insider shares that come to market as well so supply, and demand supply, increases. If the man stays the same we, start to see that stock drop and that's when you can jump in the puts and make a lot of money there - I love, this part and it. Is a very natural process, people. Build a company they get stock at a much lower price they. Present, the company in an IPO and then several. Months down the road they can sell their shares after the IPO that. Massive, amount of selling ways on the stock and it comes off then crashing, down I mean look at some of these charts here these are really, really big drop, if you had puts on these moves I mean, look, at this this, stock absolutely. Tanked there. It's just the natural process of an IPO quite frankly if I built a company that came to market and I had shares that, were locked up when, they were available, to be sold if the, price was high I would, sell my shares it's, you. Had shares at $1 and the stock is trading at 100 wouldn't you sell it yeah, what's important. Here is where. We're buying the company at the IPO, possibly. When the options, become available to or buying calls these are bullish, things we, need to know when insiders, are gonna start selling because, that's, gonna weigh on the stock we want to we want to sell our stock or our, calls before, that but, there's another way to profit here and I know you love this when you saw his strategy, you're like all right this, is bing-bang-boom actually, my favorite part of it profiting. From that predictable. Date when, the insiders, have, the opportunity, to sell because, the stock hardly, ever goes up but often, it goes down and that's an edge, you can have in the market yeah it's a payday for them right they've been waiting a long time to. Make money off this investment, that they have and as they take their payday we can take ours. Man. So all. Right so you know that the lock-up is expiring. You know insiders, are selling their shares so, you should be out of long positions, you should be out of calls I assume. Your buying puts oh yeah at the time insiders. Would start offloading their, shares, and these these puts can be pennies. I. Love, it so we're talking about options, that, could go for pennies or a buck and then, have explosive, 500 700 or even thousand percent moves because I mean look at the charts they can really drop I mean, stocks go up slow as you noted but they come down fast. When. Those when those markets get flooded, with those extra shares from insiders, that's where you can start to see that drop because supply just explodes. But, that's when you got to know when it's coming so you can get it at the right time I've been looking at your charts in your portfolio, and what I'm most shocked at and what I really didn't realize is I almost suspect that. The hype and all the excitement, around these IPOs drives. Them higher prior, to lockup and that, benefits, those insiders, I mean if, had a public company and I saw it go from ten to fifty in the first six months I'd, be excited and what's.
Going On during that time companies announcing, all this amazing news it's hitting the market for the first time it's, happening in on the well-known companies, but it's also happening on these small companies I mean the proofs in the pudding we've just seen the charts that's, amazing, so you get a huge drive higher and then, I not. Always but often a huge drive lower and you can profit three times two times on the way up and one time on the way down well that's it can you love about this there's a lot of activity, I don't think people understand that IPOs but there are there are multiple, places where you can jump in with activity, on day trades swing trades options, you just got to know when it's happening and what you're gonna do that calendar, simplifies, that it really simplifies, that for busy guys like us sure I know I'm gonna be trading with him I've. Got time for a text message with a green, light. That's. What I've got time for man well, guys I got to tell you I love. This system it sounds fantastic I think our members are gonna eat the sell out they're gonna love it I'm excited to get started with it it, sounds like it gives you a unique, edge in, the market where you can like predictably. Profit. From these IPO situations. Which we know are explosive. In the market all time so, we've talked a lot about it now tell us exactly, what. Do people get with, IPO, payday well, yeah let me break it down it. All starts with the calendar and the calendar is a summary, of thousands. Of dollars that I spend every year to get this private, information, right. Along, with hundreds, of hours I put into, researching. That and synthesizing. That information, and drawing, them down into three, important. Moments in the life of an IPO the. First day when. An IPO goes public it's like Christmas morning you just don't know what's coming right. And. You got to know is this a red light or is this a green light so I'm gonna let everybody know on that, morning right what we're doing is it time to make a profit for a payday or not, and then after, that wait wait I'd, like you wanted to be the year that's right. Nearly. Every day. That's. Cool cuz I really get jacked up for Christmas and I love trading. That's. Right and, these are loud ones you guys are missing you don't know they're coming but I'm gonna let you know they're happening so you don't miss the opportunity for, that payday I'm sick of missing out man I say these things too late I want you to tell me if I can see it now that I'm just like J christmas, is coming huh I thought what people need to understand, is we're, going to be looking to Ben as a resource. On that first day to, make these trades as well, as him sure that's right and so then after that first day once Christmas is gone there's more to, come really right once, options, open up that's the leverage we can use as these things continue to rise to, buy calls to, have leverage you can buy stocks too but to buy calls and options if you want at that point and you can make hundreds, of percentage as the stock right that's your yeah I would be back, on that next. Phase but I'll bet you're gonna be jumping I love that yeah all, right all right get the summary on that moment too but then it, gets even better there's. The moment when the lockup ends when, we know that the market is being flooded with supply, right. By that time we're out of our calls we're out of our buys right. For the stock or waiting, for this moment and I, know it's worse, when you're left holding a bag and the stock goes down but when, we know this lockout ends we're, gonna buy puts and we're gonna make money as the stock rides down Jeff it's one of the most predictable, things that, you can find in the market when you know this date comes supply. Comes, to the market and the. Stock drops and we buy the puts that will be there that is what I love about this service the, the, third phase right there I don't know why we haven't been doing this religiously. First of all I didn't even know there was hundreds of IPOs every year me neither so the fact that you can scout out the lock-up on every single one of them and look, to buy puts which is is bearish, you're gonna make money as those insiders, are selling, their shares, hey who, blames an insider for taking, a huge payday they've waited my wouldn't I wouldn't blame them and I would sell my shares if I what I'm glad I can profit along with them by behind and.
You're Gonna laugh everyone, know how to do that in the, third face it's red light it's green light again, that's simple that's right I put the time and the money and the energy, and to just making it simple, and easy for you guys cuz you're busy and everybody else is too but, that's when we deliver every, time one of these moments happen so, red light a green light every, phase the way that's right I peel open options, start and the, lock up right and Jeff I wouldn't be trading a real money account for, this the whole time right I got skin in the game and this i profit, I hope. To bring that example, to everybody, else yeah I love that and my, understanding is you're going to stream at portfolio it'll be an e trade profile streaming, to your client streaming live you, can't beat it I mean you're, gonna be the ultimate, resource, at Raging Bull for everything, IPO oh man this, is great that's, the goal the one-stop, shop for IPO trading, and profit oh my, I'm, sure, people have questions, I'm so glad we're bringing this in, I'm. Sure, people have questions so we turn turn it over at this point in time let's go you ready let's do it alright well. Ben's gonna get started in just a minute he's going to get back to his computer and take your, questions, in just a moment.