Investment Opportunities

Cash in Big With The RealReal

War Room members have made a lot of money with online retailer The RealReal (Nasdaq: REAL). And just for a refresher, The RealReal is not your typical online store. Its main attraction is high-end retail consignment, with brands such as Valentino and Christian Dior.

Its unique selling proposition is that it authenticates everything it sells and if you’re not happy with your purchase for any reason, it will refund your money.

That’s quite a promise, and The RealReal’s sales have been on fire lately…

The company takes a cut of each sale, so there is very little it invests in inventory. It’s basically a trustable platform for those wishing to sell their high-end items… and those looking to buy those items at a huge discount to retail.

Although it has been doing well, The RealReal has run into a problem that plagues just about every high-end reseller… knockoffs.

Counterfeit merchandise can be so good that it sometimes evades authentication. The key word is “sometimes.” The vast majority (more than 90%) of The RealReal’s items are not in question. But CNBC recently did an exposé that revealed the company sells knockoffs.

In response, the company said it will try harder and hire people with more experience. It took a toll on the shares, which dropped from the mid $20s to the mid-teens.

That is where the opportunity for a surprise lies.

The assumptions are as follows:

  • The RealReal’s buyers are not tuned in to CNBC 24/7.
  • The company offers an ironclad money-back guarantee.
  • The RealReal still offers the only online platform of its kind that delivers hundreds of millions of dollars in sales.
  • The company is acting proactively to make the goods it delivers even more legitimate.
  • There is huge demand for high-end goods.
  • The RealReal is entering its strongest selling season.

So how are War Room members attacking this speculative situation?

Well, for the actual details of this play, which is still open to new members, you’ll have to be a member of The War Room.

Action Plan: What I can tell you is that War Room members entered the play using a spread, which reduced their cost significantly and allows them to profit on the upside. Because they used a unique strategy, they have the chance to reduce their cost even more and increase their upside equally.

The RealReal is the perfect type of stock to trade and cash in big… or risk very little if it goes against you. And with almost three months until The RealReal reports, War Room members could be in for a very, very profitable wild ride! So what are you waiting for? Join me in The War Room today!


About

With more than 20 years of experience, Karim has mastered the subtle art of options trading. What we admire about him is his ability to score huge gains while minimizing the massive amount of risk that often comes with options. Beyond his expertise in options trading, he is also the author of the best-selling book Where in the World Should I Invest? He publishes weekly about smart speculation in his latest free e-letter, Trade of the Day.

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