[Options] Going on a Viking Quest
And here's a one-year chart:
Was that a failed top when it first traded below $60 per share? And if so, can it make it back to $100 quickly? In the video above, we dig more deeply into why it can.
So we're betting it can, and it will pay very well if it does.
Here's the Play:
I like buying $VKTX September 80 calls for approximately $4.25 per contract. This premium we pay today is the most we can lose if we're wrong, so I'll be sizing my position with that in mind.
For those who are so inclined, also selling the September 100 strike calls, creating a bull call spread, would lower your net cost in the trade to about a $2.30 net debit, with the tradeoff being that we've capped our upside at $100 per share.
Both trades are viable. Choose your own adventure.
In either case, my stop-out will be $47. Any closing price below 47 invalidates our thesis (for now). I'll also consider taking the risk off if I find myself down 50% of the value of my initial debit.
If/when we trade up to $100 per share, it'll make sense to at least sell half of the position to lock in some nice gains (if just long calls), or sell the spread (if long the spread).
If you have any questions on this trade, please send them here.
If you missed my most recent ASO video Jam Session, you can catch a replay on Stock Market TV.
P.S. We do trades like this regularly. If you'd like to leverage Best-in-Class technical analysis into smarter directional options trades, try out All Star Options Risk Free! Or give us a call to learn more: 323-421-7910.