Whenever JC is out, the Morning Show becomes the Strazza Show. 

I invite some of my closest friends on for the guest segment, and we bring the analyst team members on for a free-for-all market discussion. It’s a blast.

Today, we had an extra special guest, David Lundgren.

I’ve learned so much from my conversations with Dave over the years. 

One of the big lessons I credit to him is the importance of outlier trades. We spent a good chunk of time discussing this on my Off The Charts podcast a few months back.

But, I’ve also learned the importance of having big winners first-hand over the years. Figuring this out has been quite the journey, and it has made all the difference for my trading.

I believe in being overly aggressive and making as much money as possible in bull markets. 

Today we held our Breakout Multiplier Weekly Strategy Session. If you’re not a member, click here to join us.

We do this every Thursday at 11 a.m. ET for Breakout Multiplier members, where we discuss new trades ideas, open positions and answer questions from the chat.

Here are two takeaways from today’s call:

• One Rule: Sell the Double

Discipline is crucial in any trading strategy. 

Today, we had a brief discussion on why it is so important to "sell the double." 

It’s the only hard and fast rule we have. But it’s critical. Without it, the whole thing breaks down.

Happy Friday, folks.

It was another wild week in the market. Let's wrap it up with some portfolio maintenance and general thoughts about how we made out.

First, congrats to everyone who hit big with SoundHound.

These outlier trades are actually common with our system. And we need them because they pay for all the zeros.

If you let it ride, and you are up 25x today, fantastic. 

If you didn’t. Pay attention and learn from this. It is so important to let our winners run. This is why we sell the double so religiously. It puts our minds at ease, and with the comfort of knowing we can’t lose, we are more likely to let positions go. 

In the case of SOUN, the calls were cheap, so we could own more than just 2 contracts. Larger position sizes like this make our job easier. Use it to your advantage and scale out on strength in situations like this.

Today we held our Breakout Multiplier Weekly Strategy Session. If you’re not a member, click here to join us.

We do this every Thursday at 11 a.m. ET for Breakout Multiplier members, where we discuss new trades ideas, open positions and answer questions from the chat.

One of the key benefits of buying cheap call options on low-priced stocks is the flexibility they provide when managing and scaling out of positions. This becomes especially valuable when we hit a big winner.

SoundHound is trading around 10x today. We paid $0.30 for these calls on October 14th, and they are worth about $3.20 today.

Since the calls were cheap, we bought more than we usually do in order to size the position appropriately.

This is always nice as it gives us the flexibility to scale out of the position. In other words, if we only buy two calls, and we sell one on the double, then we have no choice but to close our entire remaining position at the same time.

In the case of SOUN, calls were only $30 per contract, so I own a larger quantity than usual. I’m going to take advantage of this and scale out over time. I did the same thing with PTON when that position went more than 10x.