That’s right, we’re in the ‘hood. Robinhood stock $HOOD, that is.
Steve Strazza has been pounding the table about this name for so long that JC and I finally relented and agreed that it’s starting to become that “put up or shut up” time.
With the stock swimming just below $10 per share, JC said: “Let’s just leverage into this thing! If it’s gonna work, we’ll crush it. If it’s not going to work, we’ll know pretty soon. Below $9 we’re out.”
Here’s the chart that has our attention:
The AVWAP from all-time lows is our support.
Right on. High potential reward for limited risk is my kind of play.
So we’re going to play this one with a Bullish Risk Reversal, having naked short puts pay for our long calls exposure. [Read more…]