Who is Kyle Dennis and What is Option Rocket?
Kyle Dennis runs BiotechBreakouts.com where he offers multiple trading programs for his students: Sniper Report, FDA Insider Alerts, Option Rocket, and Nucleus. The cornerstone of his initial trading success was a unique strategy he developed and refined known as Biotech Catalyst Swing Trading (hence the website name – Biotech Breakouts). But Kyle has diversified his trading approach over the past few years to capitalize on opportunities and teach students how to generate returns in much more than just biotech stocks.
Option Rocket is his newest program where he seeks to enter high conviction positions with the goal of 100%+ gains on each trade. His approach is designed to leverage the massive potential that the options market can offer within a relatively short period of time in order to exponentially grow his portfolio. In just a handful of years, Kyle has already taken a $15,000 portfolio and turned it into well over $4,000,000. But he wants to climb over the $10,000,000 mark in cumulative gains quickly with the help of his latest “profit bucket”.
How Kyle Dennis Plans to I.G.N.I.T.E His Own Trading Profits and Help You Do the Same:
With his new Option Rocket program, he developed the I.G.N.I.T.E trading system which guides his decision-making process by making sure he considers the following six elements – Insiders, Growth, News, Institutions, Technicals, and Earnings. The one additional element he considers is volume to make sure the trade is liquid enough to easily get in and out of.
From there, he’s able to calculate a score for each potential trade from 0-100 based on all of these factors collectively. In most cases, only the potential trades with scores of 90 or higher are executed.
Using Kyle’s I.G.N.I.T.E approach, here are the key “ingredients” for a highly successful options trade:
Insiders are the high-profile individuals within a company like Directors, Presidents, CFO’s, and CEO’s who understand the inner-workings of the companies they’re working for. Obviously, these people have a better view of the overall health and future potential of these companies. So when they choose to buy and sell company stock, it can sometimes tell a story. If a handful of insiders are buying large lots of company stock, it might be a sign that they’re optimistic about the company’s future. On the contrary, if they’re selling large lots, it might be a sign of pessimism This research can be done by looking at Form 4’s, which are required to be submitted with the SEC.
Growth refers to revenues and profits. If history tells us that a company’s earnings have been up-trending over the past few quarters or years, then we might feel more comfortable trading that stock. Rather than a company with earnings that have been down-trending, which isn’t ideal from a fundamental standpoint. It’s a rather basic piece of analysis, but would you rather put your money into a company that continues to prove it’s worth over the course of time or one that has consistently underperformed? When financials continue to improve each reporting period, it gives traders and investors something to get excited about, which can potentially cause run-ups into earnings. These are opportunities that Kyle aims to capitalize on with regularity.
News is pretty straightforward. There’s no doubt that certain events can cause large price changes in stocks. Take biotech stocks, for example, which Kyle trades all the time. If you’re familiar with how the industry works, you know that the drugs companies are producing have to go through specific stages of approval – Phase 1, Phase 2, Phase 3, etc. When these data releases take place, which provide us with information on the effectiveness of the drugs, the results can potentially cause 50%+ increases in stock price on good news or 50%+ decreases on bad news. These are huge swings that can substantially impact portfolios one way or the other, so it’s critical to have an understanding of not only past news events, but potential future events that can drastically move the stock price.
Institutional buying and selling is another component of the research process that Kyle looks at prior to each trade. Similar to how Kyle wants to know what kind of insider buying and selling is taking place, he also wants to know where institutions are putting their money. These are large funds with quite a bit more money, tools, and personnel than the average retail trader. In other words, they have far more resources at their disposal than you and I, and if their research is telling them to build positions in certain stocks, then there must be some merit to their actions. These funds are required to report their buys and sells each quarter on a 13G Form filed with the SEC, which Kyle tracks closely using J3SG.com.
Technical analysis is what allows Kyle to look at candlestick charts on order to identify price trends and patterns. By looking at these charts, he can pinpoint critical areas of support and resistance, and decide on where he wants to enter and exit each trade he takes. He plays reversals off double bottoms, breakouts above double tops, fibonacci retracements, bull flags, cup and handles, etc. Many times, companies go through cycles depending on the month, season, or other reasons, so charts can help you see a visual representation of the price movement and market sentiment. Overall, technical analysis provides insight into the price action of a particular stock over virtually any time period you choose, and ultimately, price is the only thing that pays in the stock market.
Earnings is very similar to the “Growth” element mentioned above, but the importance can’t be understated. The reality is not only that earnings provide insight into the overall health of the company, but they are consistent catalysts that occur every single quarter. As traders, we have to research the historical trends of the companies we’re following of beating and/or missing earnings. And it’s not always as simple as you think. It’s all about expectations. Just because a company reports a loss of $10 million in a quarter doesn’t necessarily mean the stock price will fall as a result. If people were expecting a loss of $20 million, this would actually be “good” news and considered an earnings “beat”. Understanding context is imperative.
Are You Ready For Your Portfolio to Blast Off With Option Rocket?
Option Rocket is a relatively new service offered by Kyle Dennis, but if his success trading stocks translates into the options market, then I can only assume huge profits are on the horizon for not only him, but his devoted students as well. In under five years, Kyle has already taken a $15K Portfolio Into Over $4M and only time will tell the impact that his new options strategy will have on his overall results. But I think it’s safe to say that the $10M cumulative profit mark isn’t all that far off in the future for him thanks to the market expertise he has amassed paired with the leverage that the options market can provide.
Are You Ready to Join Kyle Dennis on His Trading Journey to Over $10,000,000 in Cumulative Profits? Get Started Now.
Over the years I have spent a lot of money trying to find the right service. The service who can speak to me in terms I understand and gives me that “aha” or “ya I get it” moment. Well Kyle has given me that kind of service over and over again on Biotech Breakouts by his personal perspective and style and his natural teaching abilities that is the reason I had no reservations whatsoever signing up for his Options I.G.N.I.T.E. I can honestly tell you that if you take some of your hard earned money and invest it and yourself into one of Kyle’s services it will be the beginning of one of the best investments you could ever do. – Howard W.
Written by Matt Thomas (@MattThomasEST)
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