Immediately after executing the trade, Sam sends out an e-mail, text alert, tweet, and Push Notification via the Sam Weiss iOS/Android Mobile App. You can find out how to receive notifications by visiting the notifications page.

---

At the most basic level, what we do here at Sam Weiss is wait for a stock market correction to occur, wait for stocks to reach extremely oversold conditions and then we step in and buy for our new portfolios. We then wait for a rebound to then purchase a hedge for those positions. Why does this strategy work? Because even in crashes and in bear markets, the indices will sustain massive rebounds upon reaching oversold conditions. In the 2022 bear market, for example, the NASDAQ-100 had five separate bear market rallies ranging from 12-25% each.

Once we’re long and hedged, we remain long and hedged. Our core long-term strategy is to remain long the market at all times. You can find the reasoning for that in Chapter 1 of investing basics. The skinny of it is this. True generational level of wealth in the stock market is produced by getting long and remaining long over several years and even decades. After getting long, our job is to constantly asses the portfolio for any sort of risk vulnerabilities. We perform these operations in our Daily Briefing.

We never remove our hedges once they’re put on due to the ongoing existential risk of a bear market. It is the quality of the downside hedge that allows us to remain long at all times.

---

But if you want to get an in-depth understanding about the stocks and options we buy, please read the High-Pro Strategy found in the Samwise Strategy section of the website. The High-Pro Strategy page precisely outlines the types of assets we buy for our Long-Term Model Portfolios and why we choose to do so.

The skinny of it is this. While many investors believe that in order to make any real money in the market, it is essential for them to find the next big explosive stock, Sam Weiss has moved completely away from that type of thinking or strategy. We stopped chasing the speculative “next big thing” type of trade.  We no longer look for the next Nvidia, Palantir, Bitcoin or Apple. Instead, what we do here is this.

We focus on trading blue chip stocks and ETFs that trade in very predictable patterns. By investing in stocks with well-defined business models and establish growth curves, we can more readily forecast the future direction of these assets. We then employ carefully crafted call option strategies to leverage these stable assets and produce returns commensurate with the types of returns generated by speculative “next big thing” type of stocks.

For example, while the NASDAQ-100 (QQQ) rallied a mere 23% between August 2024 and December 2024, we were able to produce a greater than 96% return over the period by simply buying and holding the NASDAQ-100 (QQQ) December 2026 $430 Call-Options. This generated 4x the leverage compared to simply holding the QQQ ETF without borrowing capital or otherwise using brokerage margin.

---

We then allocate roughly 35-40% into a handful of other stocks we believe has a high chance of outperforming over the next 2-years based on their current value relative to other stocks and relative to the NASDAQ-100. Our remaining allocation is reserved for hedging.

---

We’ll soon address this topic in a dedicated page in the Strategy section of the website. Here is the basic “summarized” version of that strategy. The trading strategy is a contrarian strategy in the sense that we buy while a stock is in a downtrend on the expectation that it will soon bottom and go in the other direction. Hence. the contrarian approach to trading.

Now at its core, our strategy involves buying near-term expiring call-options only once the underlying stock we’re targeting reaches extremely oversold conditions. We generally buy a roughly 10% portfolio position with the expectation of potentially raising that allocation to as high as 25% if the stock continues to drop. We might buy a second and third position but limit the entire trade to 25% maximum.

In most cases, our trades end up working out immediately after entry. That is because most high quality stocks will rebound off of oversold conditions in the overwhelming majority of the cases. But there are instances where that doesn’t happen. There are cases where stocks will reach extremely oversold conditions, sustain a tiny rebound and then go on to sustain a second or third instance of oversold.

Here’s how we address this. We generally wait a long time before making a second entry into the trade. It takes a lot of additional selling for us to dollar cost-average and we generally wait for a second instance of oversold conditions first.

If we do make a second entry, then in most cases, the stock will rebound significantly after its second instance of oversold conditions. This gives us the ability to exit the FIRST entry. Sometimes we take a small gain on the first entry, sometimes a slight loss. In most cases where a second leg lower occurs after entry, we’re able to exit the first position cleanly. That puts us back to a 10% allocation and deep in the green on the second entry.

If the stock continues to rally from there, then we close out the second entry successfully and all good. If it goes lower toward a third instance of oversold, we repeat the initial process buying second position, wait for rebound and close out the first.

---