Another quick little update on the NKLA position we put on a couple weeks ago.
Our patience from our original entry timing has paid off, and the directional move we were playing for has happened. $NKLA has traded down to our target price of $35.
JC's been pounding the table to me about Abbott Labs $ABT for a couple weeks now.
I've been slow playing it, waiting for some new highs. We're getting them now. It's time to get involved.
The base $ABT formed over the last three months is a thing of beauty. And the fact that it's in a hot sector and printing new all-time highs is only sweetener. Then when you add in the fact that options premiums are at the lowest levels since March and I'm starting to get pretty excited.
I don't prefer getting long stocks that aren't breaking through to some kind of major new high or an all-time high. But every so often the stars align to play for the end of a major downtrend with some clearly defined levels of support to lean against.
We're finding that right now in the recently maligned Marijuana stocks space.
Sometimes, the generous idea guys at All Star Charts just happen across something that immediately catches their eye and they post it up quick on twitter.
Today Steve Strazza offered this up on Virtu Financial $VIRT:
This is Virtu Financial $VIRT, a HFT which benefits from the wider bid/ask spreads and higher volumes that accompany periods of heightened volatility... price is attempting to break out above its YTD highs ~26 pic.twitter.com/1ZmRO29QwS
That base, and the low volatility in options immediately caught my attention too. These are my favorite setups: Blue skies up above coupled with low vol.
So I'm keeping it simple and swinging for the fences.
The fine gentlemen at All Star Charts have released with latest Quarterly Playbook with themes to be aware of for the next three months, as well as trade ideas within sectors and individual stocks that are setting up. Head over here for a deep dive and great read.
One idea that stood out to me is an e-commerce company focused on pet supplies and medications. No.... not pets.com. LOL
A recent favorite among Robinhood traders, Facebook $FB is consolidating near all time highs and put in a clearly defined risk management level last week that gives us a great level to lean against on the long side:
As July gets under way, it’s time to review positions with July 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.
