Andy Snyder of Manward Press has released a video talking about how, for more than 30 years, a “little-known market event” has occurred on the third Friday of each month.
He calls this Wall Street’s monthly “Rollover Event” and claims that, since revealing how it works, “traders have begun to unlock explosive profits” within weeks.
How does it work?
In short, Andy Snyder has developed a strategy that involves placing an options trade before the third Friday of every month, which is typically when monthly options contracts expire.
According to Snyder, this is also when “huge financial firms” roll money into the next month’s options contract, which he says can cause “certain options’ prices to jump.” And his strategy centers around taking advantage of this “phenomenon.”
Is it legit? There’s no guarantee Andy Snyder’s “Rollover Trade” strategy will make you money, and there are risks involved with trading options, as with any investment. But I haven’t seen anything to suggest it’s a scam.
That said, to access the “Rollover Trade” recommendations, you need to join Snyder’s Venture Fortunes service, which costs almost $2k. So let’s take a closer look at what Snyder’s strategy involves and what you get if you decide to join the service.
What Is the Rollover Event?
As mentioned, the “Rollover Event” Andy Snyder talks about in the presentation represents the third Friday of every month, which is when monthly options contracts expire.
And in case you’re not familiar with options, these are derivatives of an underlying asset, like a stock. And while there are many different options trading strategies, Snyder’s strategy appears to focus mostly on buying call options based on the example trades he shared.
Call options allow you to control a larger number of shares with less upfront capital compared to buying regular shares. And as such, they can act as a form of leverage.
One of the benefits of this is that if the underlying stock price goes up a little, the associated option can go up a lot. But the downside is that your losses can be amplified.
So there are pros and cons to consider.
Where does the “Rollover Event” fit into all of this?
Well, instead of letting an options contract expire on the third Friday of the month, these can be “rolled over” into the following month. The technical term for this is Roll Forward, which basically involves extending an option contract nearing expiry to a future date.
And according to Snyder, this “Rollover” can cause “certain options’ prices to jump.”
“As the third Friday of each month approaches… a MASSIVE money transfer occurs.
That’s because this is the day when monthly options are set to expire, which means options owners will have to either let their options expire worthless…
Or sell their options and shift the proceeds elsewhere.
But here’s the thing…
Virtually every major financial institution – from investment banks to hedge funds – has millions… in some cases even BILLIONS… invested in these monthly options…
So when the third Friday comes around, rather than just letting their options expire worthless…
These huge financial firms will simply rollover millions, if not billions, of dollars’ worth of expiring options into the next month’s options contracts.”
“Because what I’ve discovered is that this HUGE money Rollover, each and every month, causes certain options’ prices to jump…”
So, to sum it up, the Rollover Event is a term Andy Snyder uses to describe the third Friday of the month when options contracts expire and are rolled over. And the “Rollover Trade” strategy he developed is based on this “event.”
How Does the Strategy Work?
During the presentation, Snyder shared numerous examples of the types of “Rollover Event” trades he’s talking about to illustrate how his strategy works.
In short, he showed several charts depicting buying the next month’s option the day before the previous month’s option (for the same underlying stock) expired.
From there, he showed the volume spiking on the “new” option contract the next day (AKA “Rollover Day,” which is Friday). And he showed the options’ price going up over the next several weeks, suggesting that this process could lead to substantial gains.
Of course, there’s no guarantee the strategy will work out that way in reality, but that’s the gist of how the strategy can work in theory based on the example trades he shared.
And Andy Snyder says he uses a “very selective criteria” when selecting which options to recommend.
What does his “criteria” involve?
According to Andy Snyder, the first thing he looks for is “strong option volume.”
“Now, the very first thing I want to see is strong option volume.
I want to be sure that the signals I’m seeing are reliable… because if a stock’s options volume is too low, a spike could appear meaningful…
But end up being a false alarm.
So liquidity is absolutely essential.”
The next thing he says he looks for is “unusual trading activity,” which he describes as a surge of open interest. And from what I can gather, the reason he looks for this is to help gauge the “Rollover” potential for options contracts in the future.
“Next, I want to see some sort of unusual trading activity. In other words, I want to see a surge of ‘open interest.’
Open interest reflects the number of options that are currently available in the market… but have yet to be settled.
The basic idea here is to look for a surge in front-month activity, without seeing an equivalent demand for the next month’s contracts.”
According to Snyder, these first two steps help narrow his watchlist down to “20 or so optionable stocks.”
From there, he says he does “proper due diligence” to ensure there’s “solid support for a coming surge in options volume.” And some of the examples he shared involve looking into things like news events, trends, and mergers.
Lastly, Snyder says he narrows the list down to about two or three picks he’s confident about by looking at momentum and using “time-tested technical signals.”
“Ideally, there should be some strong momentum in the stock to support any future momentum in the options.
For that, I use a variety of time-tested technical signals… like Keltner Channels, RSI, Chaikin Money Flow and so on… to see what potential buy signals are being triggered at the moment.”
Once it’s all said and done, Snyder says he typically recommends “two or three monthly Rollover Trades each month” to subscribers of Venture Fortunes.
Recommended: Go here to see my #1 rated stock advisory of 2022
What Is Venture Fortunes?
Venture Fortunes is an investment advisory service run by Andy Snyder of Manward Press that gives you access to investment ideas, research, training, and other resources.
The service costs $1,999 for 12 months, and as a subscriber, you get access to shorter-term and longer-term recommendations each month.
The shorter-term trade ideas are the “Rollover Trades” Andy Snyder recommends as part of the strategy discussed earlier. According to Snyder, he shares a new trade idea in the form of an “alert” the day before the third Friday of each month. This shows you what options trade he’s recommending, instructions on how to buy, and his analysis.
The longer-term recommendations he shares with subscribers center around early-stage growth companies, and this appears to be the core focus of the service.
“You see, I’m not only identifying the powerful monthly Rollover Trades you’ve already seen today…
In many ways, that’s just a bonus… a very big bonus!
Another big part of what I do is help my readers target trades when they’re at their earliest, most explosive stages.
That means targeting young, high-growth companies… the kind that can end up making huge headlines as they revolutionize the economy.
Fresh IPOs… hot new technologies… and even special purpose acquisition companies – or, as you’ve probably heard them called, SPACs.”
Aside from investment ideas, subscribers of Venture Fortunes also receive monthly video calls discussing the market and model portfolio, weekly research on which stocks and options Andy Snyder’s recommending, and videos on options trading.
Should you join?
The Venture Fortunes service caters to those interested in Andy Snyder’s “Rollover Trade” strategy and who want to invest in early-stage tech companies.
So it could be worth checking out if that’s what you’re looking for.
Andy Snyder shared numerous examples of winning trades he’s recommended, too. So the service seems to have a decent track record.
That said, there is no guarantee you’ll make money. And while all investments involve risk, trading options and investing in early-stage companies can be particularly risky. So the service may not suit investors who are looking for more conservative strategies.
Also worth mentioning is that Venture Fortunes doesn’t have a cash refund policy in place. Instead, the Manward Press website states that you can request a credit to use on a different service that either it (or one of its partners) runs if you decide it’s not for you.
Who Is Andy Snyder?
Andy Snyder is the founder of Manward Press, a Baltimore-based financial publishing company that sells numerous services, including Venture Fortunes, Alpha Money Flow, and Snyder’s flagship advisory, Marward Letter.
According to his Manward Press bio, Snyder “cut his teeth” at a financial firm with nearly $100 billion in assets under management. And his commentary has been featured on Fox News, along with other radio, print, and online media outlets over the years.
He’s also released other stock teaser presentations in the past, one of which I wrote about fairly recently. It had to do with something he called a 100X “VPO investment,” and my research suggested it was an equity crowdfunding deal.
As with the “Rollover Event” pitch, Snyder was promoting the Venture Fortunes service in the VPO presentation. However, that teaser focused more on early-stage investments.
The “Rollover Event” presentation centered around Andy Snyder’s options trading strategy and Venture Fortunes service, which is where he shares his “Rollover Trade” ideas.
To recap, the strategy involves following Andy Snyder’s recommended “Rollover Trade” before the third Friday of the month in the hopes of seeing a profit in the weeks ahead. And the service shares early-stage investment ideas for those interested in longer-term picks.
At the end of the day, only you can decide if the service is right for you. And I haven’t joined it myself, so I can’t say from experience whether or not it’s worthwhile.
My main goal when looking into this was to figure out what the heck a “Rollover Event” was (lol). And hopefully, what I’ve shared in this post has helped shed some light on this.
And if you’re unsure if you should spend $2k to join the Venture Fortunes service, one idea might be to check out Snyder’s free email newsletter service, Manward Financial Digest.
You will likely end up seeing promotions by joining that daily e-letter, but it might also give you a better idea of what to expect before deciding anything.