Friday, August 22, 2025

Wall Street Hates This Stock (I don’t)

Trade of the Day Wake-Up Watchlist

"I've used this strategy to lock in 302%, 500%, and 823% overnight gains."

Nate Bear, Lead Technical Tactician, Monument Traders Alliance

Nate Bear

I made 1,129% in two days on a stock Wall Street absolutely hated…

And right now, I'm hunting more of these setups.

Look, markets are choppy as heck heading into Powell's Jackson Hole speech. With this much uncertainty in the air, most traders are sitting on their hands or playing it safe.

But that's exactly when my "lotto trade" strategy crushes.

I'm talking about high-risk, high-reward setups that target one specific type of stock: companies Wall Street refuses to touch.

I know what you're thinking—high risk? Who wants that?

Here's why I do: I've used this strategy to lock in 302%, 500%, and 823% overnight gains. And yeah, that 1,129% winner in two days I mentioned? That was on RILY calls last year—another stock Wall Street absolutely hated.

The Secret: Risk Small, Win Big

Here's the thing about lotto trades—I manage my risk through position sizing, not by avoiding opportunity.

The majority of these trades cost me less than $2 in options premium. So while the percentage gains are massive, my actual dollar risk stays controlled.

Think about it: I bought RILY calls for $0.65 per contract and sold them for $8 per contract.

Why Wall Street's Hate Creates My Edge

I've noticed something interesting about these explosive moves—they almost always happen in stocks that Wall Street absolutely despises.

And I'm not talking about analyst opinions here. I'm talking about heavily shorted stocks.

 

Take my current watchlist target: Verastem Inc. (VSTM).

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This stock has a short float of 30.2%. That's massive. To put that in perspective, GameStop—a stock Wall Street has hated for years—only has a 16.6% short float.

Now, just because a stock is heavily shorted doesn't make it an automatic buy. Wall Street shorts these companies for a reason—most of them are genuinely struggling businesses.

But here's where it gets interesting: When positive momentum starts hitting these hated stocks, the mechanics become explosive.

Buying pressure builds. Short sellers panic. They're forced to buy back their positions, creating even more buying pressure. It's a feedback loop that can send prices parabolic in days.

That's exactly how I crushed it with RILY last year.

Why VSTM Is Setting Up Right Now

Verastem is building serious momentum. Shares are up over 58% in the last month.

And here's what Wall Street doesn't want to admit: They hate this stock for all the wrong reasons.

The Real Story:

  • Yes, VSTM has a history of pipeline disappointments (biotech investors remember everything)
  • Their initial FDA approval is for a niche cancer indication (not the blockbuster Wall Street craves)
  • They're burning cash and will need future funding (dilution fears)
  • The entire biotech sector has been beaten down in 2024

But here's what they're missing…

The Technical Setup That Has Me Interested

If you pull up VSTM's options chain, you'll see massive open interest on the $8 call strike expiring September 19th—over 10,000 contracts.

That tells me someone with serious money believes this stock is going higher.

The challenges: VSTM doesn't have weekly options, and with 61.5 million shares outstanding, the float isn't as tight as I'd prefer. But the short interest and momentum combination is too compelling to ignore.

Your Action Plan

Add VSTM to your watchlist. This is a stock Wall Street hates right now, but momentum is building.

Remember: These are potential lotto trades. High risk, high reward. If you do decide to move on them position size accordingly.

And if you want to learn the complete system behind how I spot these setups—including the exact entry signals and risk management rules—join me this Wednesday, August 27th at 2 PM ET for my Lotto 10X Summit.

RSVP HERE

Because while everyone else is paralyzed by market uncertainty, I'm hunting the next 1,000%+ winner in the stocks Wall Street refuses to touch.

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