Buying The All Time Highs

unusual options trades and unusual options volume

Unlike Bed Bath and Beyond and Kohls, the S&P500 does not mail out 20% off coupons on a weekly basis.   There are no Nasdaq Groupons.  The Energy ETF does not give you $.05 back for every share you purchase.  With the market, and a bevy of stocks, hitting new all time highs, on an almost daily basis, you would be hard pressed to find a bargain stock dangling from the clothing rack.  The majority of what you buy today, you will be doing so at the highest price someone has ever paid for that stock.

On the bright side, unlike a $19 Hamburger which will leave you with hopefully nothing more than the brief joy of its consumption,  overpaying for a shares of a corporation isn't a terrible idea?  Right?

Paying the highest price anyone has ever paid for something, it doesn't leave you with a sense of accomplishment.

"Honey I just bought 5 pounds of chop meat at the Super Market for the highest price per pound in the history of Chop Meat Distribution"

... a man's got to eat... right?


"I paid 10% more than the asking price, but I was able to get the house my family needed"

... a man's got to live.... right?

Millions of coupon clippers and deal searchers shun buying anything at full price.  At some point whatever you want to buy usually goes on sale, and you end up regretting your purchase from just a few weeks ago.  But what if that 'sale' never materializes?  Or what if that 'sale' doesn't come for another year or 18 months?


Look no further than the current state of the stock market.  Just 7 years ago in March 2009 no one wanted to buy.  Today seemingly no one wants to sell.  Those buying today are paying 100's of percent more per share than those buying in 2009.

Do you wait for the market to 'go on sale'?  Or do you buy that chop meat for more than anyone else has ever been willing to pay for it?

What if every government in the world has cornered the chop meat market, and has made all other meat choices less desirable?

and finally what happens when chop meat becomes so expensive that people stop buying it?

With the stock market, we will get to that point.  And while you aren't going to get a Groupon or a 10% of Mailer, the S&P500 will go on sale again.  Every 10% dip in this market, every time it's gone on sale, it's been a tremendous buying opportunity.

The difficulty here is rationalizing paying more than anyone has ever paid for something, or waiting for it to go on sale.  For now, momentum remains to the upside for the market.  Almost two years of consolidation resulted with a break out that likely will send the price of chop meat even higher.

and while you may not derive the same pleasure buying something at its highest price in recorded history as buying it when its on sale....

a man's got to eat... right?



Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply