YOUR ACTION PLAN My first trade setup is Boeing (NYSE: BA) on the 195-minute chart. I'd like to buy the February monthly calls on a pullback to the $205-$208 level and look for a continued move higher. The second setup is Chewy (NYSE: CHWY) based on the weekly chart. It has a very nice base in place, a very nice reversal pattern and high short float. I'm looking to run this higher into earnings, which are at the end of March - and as such, I'd like to buy the April monthly $45 calls on a pullback. The reason I'm going so far out in time is twofold. First, this is a weekly chart, and it will take time to play out. Second, CHWY has earnings at the end of March, and I want to make sure the option I choose includes that known volatility event. Since the expiration date is after the earnings release, that means the option's implied volatility will be boosting its premium for longer because there is a known event included in that option series. Basically, I can be more comfortable buying out-of-the-money calls that expire after earnings because they won't decay as quickly as a "non-earnings" series would. The third chart comes with a caveat - this is not a great company or a great stock, but the chart is setting up for a potential short squeeze. I'm looking at the 195-minute chart on Riot Platforms (Nasdaq: RIOT) and looking to get long around $6 for a move potentially toward $8. It's not a name I want to be in for long, so I'll go with next week's $6 calls and stay very small with my size. P.S. If you'd like to trade in real time with two veteran Pro Traders, I recommend checking out The War Room. Bryan and Karim have already delivered 38 wins - and counting - in just the first month of 2023! Right now they're guaranteeing members will receive 252 winning trades in their first 12 months. Click here to join The War Room. |
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