ITPM Flash Ep40 Let's Get High!

Summary

The video script discusses recent developments in the cannabis industry and presents a longer-term trade idea involving the MSOS ETF. It highlights the potential for legalization globally and explores the volatility of individual cannabis stocks. A diagonal ratio spread strategy is proposed to take advantage of the market narrative.

Highlights

• 0:00-0:47 🎤 Ben Bergreen introduces the topic, discusses the recent bullish view for gold and other metals, and mentions the performance of NM stock and GDX.

• 1:00-3:18 🌿 The host discusses the controversy surrounding cannabis, the global legalization trend, and the potential for longer-term trade ideas in the cannabis industry.

• 3:30-4:55 💰 The host introduces the MSOS ETF as a way to play the cannabis theme, highlighting its focus on US-based cannabis companies and its current position in Green Thumb Industries.

• 5:10-5:45 📈 The host analyzes the longer-term chart of MSOS and suggests a diagonal ratio spread strategy using September 11 strike calls.

• 6:00-6:26 💡 The host explains the cost and potential profitability of the trade, emphasizing the longer-term nature of the catalyst and the need for patience.

• 6:30-6:54 🎵 The host concludes the video and encourages viewers to stay informed and watch for developments in the cannabis industry.

Key Insights

• 💼 The video presents the potential for longer-term trade ideas in the cannabis industry, highlighting the global trend towards legalization and the volatility of individual cannabis stocks.

• 📈 The MSOS ETF is introduced as a way to play the cannabis theme, offering exposure to US-based cannabis companies and the opportunity for active management.

• 💰 The diagonal ratio spread strategy proposed in the video allows for potential profitability while hedging against time value decay, providing a more nuanced approach than simply buying individual stocks.

• ⏳ Patience is emphasized as a key factor in this trade idea, as the catalyst for significant movement in the cannabis industry may take time to fully materialize.

• 🌿 The video challenges stereotypes and misconceptions about cannabis, highlighting its potential health benefits and the growing acceptance of its medicinal use.

• 📉 The volatility of the cannabis industry is acknowledged, with the MSOS ETF serving as a more stable and diversified option compared to individual stocks.

• 🌍 The global nature of the cannabis industry is discussed, with examples given of legalization efforts in Germany, Florida, and various states in the US. The video suggests that this trend presents both opportunities and challenges for investors.