This is a bonus, second trade idea for today that came out of our internal conference call this morning and dovetails nicely with this note that JC just published.
We’re getting short Lululemon, $LULU due to what appears to be a failed breakout:
Expert technical analysis of financial markets by JC Parets
This is a bonus, second trade idea for today that came out of our internal conference call this morning and dovetails nicely with this note that JC just published.
We’re getting short Lululemon, $LULU due to what appears to be a failed breakout:
It doesn’t happen very often that a bearish setup presents an opportunity for us to position with a simple long puts purchase. Usually, when we want to buy puts, the whole world is on to the idea and the premiums in the options market reflect that.
But today, we’ve got a situation where a stock is flirting with breaking a key support level, and the options market is pricing in a smaller move than our research suggests is possible.
[Read more…]
We got stopped out of a Wells Fargo trade a couple of weeks ago, and it looks like that was the whipsaw it needed to shake weak hands out. And since I was shaken out, I consider myself among the weak hands squad. I’m ok with that.
But given what we’ve seen since we were stopped out, we’re getting back in for another try. This time, with tighter risk management and a longer runway. [Read more…]
Today’s trade is in a $79B company that provides software, hardware, services, and reusable integrated circuit design blocks.
Here is a chart of Cadence Design Systems $CDNS: [Read more…]
Today is Day Two for the All Star Charts team hosting our Portfolio Accelerator event in New York City.
During our group conversations today, Strazza and I put our heads together and put on this trade in Snowflake $SNOW.
Hey folks…
The entire All Star Charts team is presently in NYC hosting our Portfolio Accelerator event. So I will skip the preamble and get right to the point for today’s trade in $TSM… [Read more…]
The housing sector continues to perform well, and it makes sense that companies in the mortgage business should come along for the ride.
One of those names had a big push into the end of the year, and then had a monster pull back to start 2024. We think this reversal may be a bit overdone and the stock is now at a level where we can take an advantageous position with minimal downside from here. [Read more…]
“The Iron Condor is a risky trade!”
This comment was shared today during my appearance on the Morning Show with JC and Strazza.
We were discussing this trade in $TSLA we put on yesterday.
Sure, this trade might have some risk in it.
Newsflash: ALL trades have risk. If there was no risk, there would be no potential reward!
An Iron Condor is a four-legged options spread consisting of equal amounts of short out–of-the-money puts and calls, and long further out-of-the-money puts and calls that protect the position and define the risk.
Here’s the PnL Graph for the $TSLA trade and this is a pretty common structure for an Iron Condor trade: [Read more…]