A Shocking "Work-From-Home" Trade

You're receiving this email as part of your subscription to Lou Basenese’s Trend Trader Daily. [Unsubscribe](. [Trend Trader Daily]( A Shocking "Work-From-Home" Trade Thursday, December 9, 2021 A fresh survey from Bank of America (BoA) confirms corporate America’s worst fear — we hate offices! A full 88% of people prefer working from home. While that’s hardly a shocker, the takeaway from BoA analyst Liz Suziki certainly qualifies as one. You see, she believes you should keep buying a basket of “work-from-home” stocks. But don’t you dare! While the desire to work from home might be alive and permanent, the “work-from-home” trade is dying. Here’s proof — and the only real way to keep profiting from this trend... > ADVERTISEMENT < My #1 Biotech Stock for RIGHT NOW One tiny company could reveal groundbreaking clinical trial data around December 15th... And once it does, it could instantly be scooped up by big pharma giants... Potentially sending shares skyrocketing! This could be your last chance to jump in... Which is why I'm pounding the table on this tiny stock RIGHT NOW! [Just click here for the full details »]( From Darling to Disaster! One week ago, electronic document signature company DocuSign, Inc. (DOCU) became the “latest ‘stay-at-home’ stock to face the reopening wrath,” as Axios put it. I’ll say! The stock plummeted 43% in a single day, erasing roughly $20 billion in market cap. As you can see, that's a major portion of the stock’s “work-from-home” gains since the start of the pandemic. Gone in a blink! (click image to enlarge) I’ll confess that sometimes investors overreact. But not here. The sudden sell-off matches the sudden drop-off in business. Or as CEO Dan Springer confessed, “While we had expected an eventual step down from the peak levels of growth ... during the height of the pandemic, the environment shifted more quickly than we anticipated.” Translation? Look out below! Rest assured that DocuSign isn’t an anomaly, though. As I’ve been warning you for months, the bottom’s falling out from underneath the entire swath of “work-from-home” stocks. Zoom Doom Take Zoom Video Communications, Inc. (ZM), for example. Although shares didn’t plummet in the blink of an eye like DocuSign, the value destruction ranks right up there in terms of severity. More specifically, the stock is down 65% from its October 2020 peak. What’s more, the decline has been accelerating lately, as shares shed 25% in the last two months alone. (click image to enlarge) The good news? Trend Trader Pro readers are now sitting on a 133% gain. That’s right. A select group of my readers here have been profiting from the downturn in “work-from-home” stocks. But how so? And how can you get in on the action? Let me explain… A Triple Whammy of Plunges (and Profits) You might recall reading my bearish piece on Zoom in early October (see [here](). Since you’re a regular subscriber, though, you didn’t have access to the specific trade recommendation I included at the end. In Zoom’s case, I recommended buying long-dated put options that would increase in price rapidly as the stock price decreased. And that’s exactly what happened: As shares fell 25%, the options soared 133%. Not bad for a 64-day trade, huh? But that’s not the only winner my readers had access to... Spinning Out of Control You’ll also probably recall reading my bearish (and personally embarrassing) piece on Peloton Interactive, Inc. (PTON) a few weeks after my Zoom article (see [here](). But again, since you’re a regular subscriber, you didn’t have access to the actionable trade I shared. And you guessed it — that one is working out perfectly, too. As you can see, Peloton shares have plummeted 72% from their Covid-19 peak. (click image to enlarge) And that nasty 48% downdraft you see towards the far right of the chart? That occurred shortly after I warned readers about the company — and it sent the recommended options soaring 231%. Again, not a bad return for only a 50-day holding period. Hoodwinked Last, but not least is Robinhood Markets, Inc. (HOOD). While the retail trading boom certainly isn’t going away, Robinhood’s stronghold on this lucrative client base is evaporating. Blame it on frequent outages, poor execution pricing on stocks, a schizophrenic business model that tries to earn commissions chasing the latest fads, or the fact that Robinhood customers are simply becoming wiser investors and migrating to better platforms. It doesn’t matter. The trend is clear, as shares are down 72% from their Covid-19 peak — and a staggering 33% since my late October warning (see [here](). (click image to enlarge) Once again, if you were a Trend Trader Pro member, you’d be sitting on even more impressive profits, as another “work-from-home” stock cratered. This time to the tune of 125% in just over 30 days. But I’m not bringing all this up today to brag or make you envious. Instead, I want to make sure that you start profiting from this trend right away. You see, I’m convinced that the three “work-from-home” stocks above could crater another 50% before they even get close to becoming potential bargains. And the same thing goes for almost all the “work-from-home” stocks in the market. That makes this week’s Trend Trader Pro “Trade of the Week” all the more timely and potentially profitable. In a single trade, it allows us to cheaply bet against the entire group. If the returns come anywhere close to approaching my previous “work-from-home” recommendations, you’ll easily recoup the cost to upgrade your membership, and then some. So what are you waiting for? Click on the box below to get more details on upgrading your membership, and more details about today’s trade, which could more than pay for the service in a matter of weeks. TREND TRADER PRO TRADE OF THE WEEK [ ACTION TO TAKE ] FOR TREND TRADER PRO READERS ONLY [> Learn more]( Ahead of the tape, [Lou Basenese] Lou Basenese Founder & Chief Investment Strategist Copyright © 2021 Trend Trader Daily, All rights reserved. You signed up on []( Our mailing address is: Trend Trader Daily 301 S. Perimeter Park Dr. Suite 100 Nashville, Tennessee 37211 [Update Subscription Preferences]( | [Unsubscribe from this list]( RISK NOTICE: All investing comes with risk. That includes the investments teased in this letter. You should never invest more than you can afford to lose. Please use this research for the purpose that it's intended — as research only. You should consult a professional financial advisor before ever taking a position in any securities you see herein. 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