I don't think there's any doubt that we'll be seeing a surge in healthcare spending in the coming months and years. And while that makes for a good story, the charts in the healthcare sector offer a more compelling narrative.
Breaking away from custom here, we'll be taking a shot in a laggard in this sector that offers us a pretty clear risk management level and an affordable opportunity for us to buy time for the catch up to commence.
Depending on where you're located, the month of November means many of you are looking forward to your first snow falls of the season. Were I live here in Colorado, we've already had two snow storms -- the first one on the day after Labor Day!! Don't feel sorry for me though, we love it. And with all the wildfires Colorado has had recently, it was badly needed.
With snow on my mind, it feels fitting today's trade idea is also related to snow, if in name only.
As November gets under way, it’s time to review positions with November options that remain open (haven’t already hit profit targets or been stopped out).
Most trades I put on for All Star Options tend to have a minimum duration of 30 days (short premium plays) and often as long as 6-8 months (for long premium plays). As options approach expiration, greeks like theta and gamma start to become my enemy and whipsaw my P/L. Therefore, as options and spreads get into the expiration month, my best practice is to put each position on notice — it’s time to take action.
This month, we have four open positions with November options remaining on the books. All the rest have already hit their profit targets or stop loss levels. In the scoreboard below I denote the date we exited each position.
It's been a slow "ideas" week here at All Star Options for obvious reasons: the markets are getting destabilized ahead of the election and news flow on the Covid19 front.
As JC likes to remind us often -- there are no called strikes on Wall Street. We can sit in the batters box with the bat on our shoulders and just look at pitch after pitch without taking a swing.
If you love guacamole, chips, and buying on dips, you'll like this play. Our latest Under the Hood Report is out and a familiar eatery is offering up a nice deal for lunch.
Bullish setups continue to appear -- and work. Sure, there are plenty of reasons for weaker souls to sit on the sidelines over the next few weeks. But only price pays, and when we can use options to clearly define our risks while still participating in a chance for gains, we'd be irresponsible if we didn't step to the plate to take our swings.
Today's trade comes from the recently updated "2 to 100 Club" list and is a $3.7 billion online personal styling and clothing platform.
Sometimes we traders overcomplicate things. With so many choices, so many moving parts, so many headlines, so many things vying for our attention on a minute by minute basis, it is easy to become overwhelmed.
It seems so obvious, but often the smartest -- yet the simplest -- thing to do is just keep investing in winners. Objects in motion tend to stay in motion, right? And if we can construct options trades that take advantage of that momentum while defining our risks in case we happen to be the last suckers to pile in before the reversal -- then we should do that all day long and twice on Sundays, right?
With that in mind, today's trade is a momentum name that is no stranger to anyone who has been paying attention to hot names this year.
Sure, you could go spend top dollar on that hot new make and model at the fancy big city car dealership.
But we all know the best deals are often found at the used car lot on the outskirts of town. And apparently investors are waking up to the fact that an investment in these operations can be good for their portfolios as well.
It isn't just the sexy high-tech names that are offering great opportunities. Sometimes, the best ideas can be the simplest ones.
After brushing my teeth this morning, I happened to be reviewing the list of stocks the ASC research team is watching. Call it kizmet, but the fresh tingle of clean teeth was still making itself known when I came across this chart:
The All Star Charts research team recently published our Quarterly Playbook for Q4. ASC subscribers can check it out here. And one of the highlighted semiconductor names has caught my attention for an opportunistic options trade.
As a trader, I've always looked forward to Mondays. These days, I like them even more because I get to act upon some great trading ideas published in the Under the Hood report which the ASC research team puts out every weekend. There have been so many great plays coming out of the report lately. (Have you seen $PTON??? wow.)
And this most resent one has given me an idea for a "plan" today.
The All Star Charts research team is about to release a new report called the "Young Aristocrats." I've seen the preview and one of the stocks on their list is setting up nicely today for a breakout, so I'm wasting no time to get involved.
