I view its recent dip as an opportunity to add TMUS to your watchlist, with potential for a long position. The stock has pulled into a buy zone at the 20-day exponential moving average, a level it has closed above for the last two months. It is worth noting that T-Mobile has earnings on July 31, 2024. So while I do like this setup, and I do have an options position in T-Mobile[1] , I'm looking at this with a very short term outlook. This watchlist addition is particularly relevant for those interested in playing a potential pre-earnings run-up. I believe the best play to trade earnings is either before the release, which is playing for a potential run up, which is what I'm doing here. And exit before it announces. I will trade the stock again after its earnings release if it shows me the right pattern. While I don't know if this trade will work, over the last four earnings, the stock has risen by nearly one percent on average, 8 days before its earnings release. Action Plan: A lot of charts I'm looking at are messy looking given the volatility in the market the last two weeks. However, TMUS has a good looking chart, and its current price is near my buy zone. Yesterday I initiated a position via call options in my Profit Surge Trader Portfolio. If you'd like to discover all the details behind my trade and many others, click here for further details. |
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