Level 2 alerts are premium alerts that are (1) hand selected and written trade ideas, or (2) are alerts generated by the AI which are flagged by our team as high probability wins.

We aim to send 2 premium alerts per week on average, targeting 102 alerts per year.

The Level 2 alerts may also be based on events that occur but are not available on the platform. 

Level 2 alerts often come with trade setup ideas as well as entry and exit targets to assist members.

Level 2 alerts are either sent in the Level 2 weekly newsletter or as email/SMS alerts if the information is timely.

What is the purpose of Level 2 alerts?

Level 2 alerts were created based on requests by users looking for a little extra help combing through the different AI trade alerts for events LevelFields identifies, and those looking for an extra edge identifying opportunities that might be one-time events which we do not include on the platform.

Level 2 alerts often include entry and exit targets, tips on how the stock is likely to trend over the course of the day, week, or month(s), and trade setup ideas including options expiration dates and strike prices.

On our end, our goal is to make Level 2 alerts as successful as possible. This sometimes means hold times ranging from 1 to 150 days. 

Can you give an example of what a Level 2 alert will look like?

Here is one we sent July 14, 2023. The return for the option contract was 160%. The return for the equity was 11% in just a few days. 

14 July 2023

Shares of United Healthcare insurance (UNH) are +3% premarket following a significant earnings beat in its Q2 2023 earnings announcement. Shares of UNH had been selling off heavily, after the company reported rising claims on optional surgeries as a rebound effect following the end of the COVID pandemic. 

The company was fighting against two negative narratives which have both been quelled: a rise in optional surgeries and a decline in hiring. The latter has proved not to be true, as the labor market remains very tight and competitive. Recent jobs reports from ADP and the U.S. Dept. of Labor showed robust, albeit slowing jobs growth.

Why is this important? UNH sells insurance to companies to cover employees. If the number of employees being hired across the U.S. declines, so will the revenue. And the opposite is also true. 

Likewise, UNH is affected by inflation. As healthcare costs rise, their profits shrink as they are forced to cover rising salaries for medical professionals. With inflation declining, per the last CPI report, UNH will be able to get their costs under control.

UNH is projecting earnings of $25 per share for 2023. Historically, the company has traded at a P/E ratio of 21. This put their target price point at 525/share. Shares are currently trading at 463 at the time of writing this.

UNH posted an adjusted profit of $6.14 per share for the second quarter ended June 30, above analysts' expectations of $5.99/share. Revenue came in higher than expected, offsetting a rise in costs from elective surgeries.

The stock is now undervalued and presents and opportunity for it to begin a rebound. As UNH is a Wall Street favorite and now trading at a forward P/E/ of 18.50, there is some room for upward momentum. 

Buying and holding the stock until it reaches 500 (or forever) makes for an 8% gain. Buying 470 monthly calls for Aug or Dec should lead to 30-50% gains. And for extra risk, buying the 470 calls expiring next week could be a 100%+ return albeit high risk.  

The trajectory of the stock will likely be a strong rise at the open followed by an immediate pullback around 10:15am which can present a saner entry point than crowding the opening bell trade. 

UNH is a good long term addition to portfolios. The stock has returned 14% per year on average for the last 10 years.

What kind of returns should I expect with Level 2 alerts?

Like anything, patience is key. Good opportunities happen often but great opportunities do not and it's our job to spot both. So we seek a constant flow of short-term trade returns in the 8-25% range along with the occasional 100-300+% return.

Since we launched the service in September 2022, here are the returns on the trades we've identified entry and exit points for (some trade ideas are still live).