All Star Charts held its Monthly Conference Call last night, and the overriding theme for U.S. Stocks is: we're likely going higher. And JC shared a bevy of stocks with charts supporting high prices in the near future.
Of course technology is on the radar, and the software sector is offering a wide selection of names to choose from.
As the U.S. continues to deal with the Coronavirus situation, it makes sense that stocks in the healthcare space should be doing well. There's a lot of attention and investment happening here to help deal with the calamity and prevent future spread.
Of course, as traders we don't need to read the headlines to know this. Following price and charts tells us everything we need to know.
One of our favorite names in the space is setting up nicely and it's time for us to get involved.
JC published a piece on Monday highlighting the rotation we're seeing into Transportation stocks. A bunch of names on that list have already experienced some good moves. But one of the names is likely to start playing catch up and that has me interested.
The team published a piece last week highlighting a bunch of setups in the Natural Gas space. A few of these stocks are already pretty extended due to recent moves, but I've found that one of them still has a lot of meat left on the bone and we can get into it with some cheap call options.
I'm on vacation and trying to stay away from the screens as much as possible this week, but you broke out on Wednesday and today you're just hanging there, baiting me into getting involved.
Anyone who traded in the late 90's only referred to Microsoft stock as "Mister Softee." It was stupid, as many stock nicknames were, but that's what it was. And you seemingly couldn't go a day without hearing "Mister Softee is making new highs!" from summer 1998 until early 2000.
I almost have PTSD from it.
Fast forward to today. Microsoft doesn't get the same media attention today as it did back then, now being overshadowed by the Amazons, Facebooks, Googles, Apples, and Teslas, of the world. But the price action is definitely giving me flashbacks.
And the ASC research team has a gaudy 323 price target for Microsoft $MSFT over the next several months which has me interested in playing along with options.
As August gets under way, it’s time to review positions with August 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.
Maybe it's because I've got some leftover pizza in my fridge which is on my mind for lunch today, but I've been taking a look at a pizza play the research team discussed during the recent All Star Charts Monthly Conference Call and it's got my mouth watering.
The title of this trade plan is a modified take on a famous old floor traders saw. Basically, when experienced floor traders saw the entire pit screaming to hit the same bid or offer, the rule of thumb was to give 'em what they want. Take the other side and close your position when all those same lemmings try to hit the exits at the same time too.
It was the second easiest money on the floor (first was "trading against paper" --- which is you and me.)
The trade I'm putting on the board is a loose take on this idea. But instead of fading direction, we're going to fade the volatility premium priced into Gold options today.
