A stock featured in a recent Junior Hall of Famers report has triggered an entry today, and it has a lot of room to run.
Earnings are on the horizon, but we'll play this stock with a defined-risk spread that takes a little of the sting out of the options' cost while giving us the ability to participate in upside follow-through should we get it.
One of my junior analysts (Rick! He's the Man!) brought a stock to my attention that is in an attractive sector that could fly under the right conditions.
Add to this that there is a high short interest and there is "meme" stock potential, and this could really be an upside portfolio-buster for us.
Today's trade offers a nice opportunity to add some diversification to my mostly long book.
It's no secret that there has been a lot of weakness that has been masked by the performance of the broader indexes.
We've got a well-diversified business that is showing signs of completing a pretty large top, so it might offer us some alpha on the downside if weakness spreads.
Today's trade is in a $1B company that provides automatic identification solutions to commercial and government customers. Being that this company participates in the Software & IT sector, I expect it to perform well in a market environment where semiconductors are leading the way.
Today's trade is in a stock who's price action is mimicking what their products delivers for its customers -- it's going vertical! How's that for kizmet?
That trade might classify as a "hard trade," but I'll be doing what I can to increase the odds of success in my favor.
This post has been made public after the trade was closed and is no longer active. All information shared is for educational purposes only and does not constitute financial advice.
As long as the pattern in today's trade holds up high, then we can profit in today's trade.
If it follows through on the upside, all the better and we'll achieve our profit target all the sooner. But as long as it doesn't falter, that's all we need to profit.
Either way, we're leveraging what the options market is offering us to increase our odds of success.
Here's a one-year chart of YPF Sociedad Anonima $YPF:
You guys in the chat room have been on fire lately!
I love the camaraderie that has been built among you guys and gals. The ideas, the mutual support, the multiple sets of eyes when a position needs our attention. So great.
You're all ONE! OF! US!
With this in mind, today's trade is in a name that has been discussed a few times of late in the chat. I've been waiting for a tradable support level to reveal itself, and we may be getting it right now, so let's get to it....