You’re probably wondering, who is Matt Maley, and what is the Inner Circle?
Well, Maley is an equities strategist and market commentator with over 25 years of experience at two of Wall Street's most major institutional trading desks, Salomon Brothers and Merrill Lynch, where he covered some of the world's most influential hedge funds.
Maley, now partnered with Benzinga, operates an exclusive chatroom with a limited number of approved traders on a first-come, first-served basis where he shares insights on his own trades and trade suggestions for others.
“My Stock Picks newsletters can speak for itself, with an average return per trade of over 50%. My commitment to you in this inner circle is to be accessible for you each trading day," Maley says.
"To give you live market commentary, the stocks I am thinking about, trade ideas, and ultimately, to help educate you to learn the way that I see the market!”
It is important to note there are risks with every trade, and absolutely nothing is guaranteed.
The Winning Trade: Okay, now that is out of the way — here’s the scoop.
A Benzinga employee who has been following Maley’s insights for over one year took a trade that proved to be fruitful.
The employee will remain nameless to protect their identity. We’ll call them Blue.
Blue took a position in ProShares UltraPro Short QQQ ETF (NASDAQ:SQQQ), which is an inverse-leveraged exchange-traded fund that tracks the Nasdaq-100 Index.
An inverse ETF is constructed by using various derivatives to profit from a decline in the value of an underlying benchmark. Simply said, SQQQ will increase if the prices of its underlying benchmark, Invesco QQQ Trust Series 1 (NASDAQ:QQQ), go down.
Blue was piqued by one of Maley’s signals — that QQQ prices may go down. So, he picked up 175 call-option contracts on the $65 strike in the inverse-leveraged SQQQ, paying an average premium of $1.28 for each of the 175 contracts expiring on May 27, 2022.
That trade cost Blue $22,420: a big bet for anyone with a weak stomach.
Though Maley’s signal proved correct, Blue netted 80% profits on the trade before executing a sale order. He walked away with $40,425, or $18,005.00 in profits.
I personally messaged Blue to congratulate him on this trade. Blue said he did not set a stop loss and held the position for less than one full trading session.
Matt Maley's Inner Circle chatroom only allows approved members to join in order to maintain a high-quality community. If you are interested in joining please Click Here To See if You Qualify to Join!
