Options In Play – Earnings On The Radar Week Of 12/4/20
The first week of December is here and it is a surprisingly busy few days of earnings. Expect big reports from Software and Retail all week.
Continue Reading -->How Will Lockdowns Affect the Market?
The market is looking bullish, despite reports of lockdowns in major U.S. cities. Find out how Sami expects the news to affect markets over the coming weeks. In this video, Sami explains: – Why APM looks good as a breakout – Where a daily buy setup is occurring in BLU – What CATB needs to take out – Why the SELB monthly chart looks better than the daily chart – Where retail stocks might be heading
Continue Reading -->Options In Play – Trade Management For Spreads
I love trading vertical spreads and they are one of my go-to strategies on stocks that have expensive options. When it comes to rolling, I usually approach spreads in 1 of 2 ways.
Continue Reading -->Options In Play – Follow The Fuel Cell Leader
Sympathy plays are a popular option strategy that I use around earnings but they also can be trades outside of major catalysts. Sometimes the action in the leader is what sets up the option trade in the laggard.
Continue Reading -->Corsair (CRSR): How We Made 56% on the World’s #1 Gaming Stock
Forget the Sony (SNE) Playstation 5 and Microsoft (MSFT) Xbox Series X — the Corsair (CRSR) explosion is the #1 story in gaming — at least for traders.In fact, Corsair just became Strategic Swing Trader’s #2 Play in November with a 56% gain in 7 days.**We nailed a 59% gain in CYH, but it’s not as fun a story! Corsair came on my radar on November 10 when a subscriber asked me what I thought of the stock. I was not crazy about the chart, but I kept an eye on it.On November 12, Corsair put in a narrow range bar, which made me think it could be on the verge of a Daily Breakout.So on Monday, November 17, Corsair went in the Strategic Swing Trader newsletter as a Long Trade with the following parameters:Entry: $29.51 (just over Friday’s high)Stop: $27.49Target: TBDStrategy: Daily BreakoutCorsair hit the $29.51 entry price before 10 a.m. that Monday, so we were triggered long.And immediately, it powered up big time. Let’s talk about why.Corsair has a very sexy story as a pure play on the booming PC gaming and streaming market. Corsair a well-known gaming brand, but very few traders even knew it was publicly traded. The September IPO didn’t get much attention, but that was a positive — the chart got us in before the stock was on Wall Street’s radar.Also important to note: Corsair has a tiny float of 17.7 million shares, so even a small amount of buying could blast it into orbit. I would guess the Robinhooders of the world were bidding the stock up like mad.After the initial pop, we had two surprise news events — which is not uncommon when you nail the chart setup.On Tuesday, November 17, Corsair CEO Andy Paul appeared on Jim Cramer’s Mad Money on CNBC. Corsair was already acting like a classic momentum fad stock, and Jim Cramer gave it a much bigger spotlight.The stock just kept running and running higher. And then on Sunday, November 22, The Motley Fool came out bullish on Corsair, saying “the best is yet to come.”Corsair rallied hard again on Monday after the Motley Fool story hit, reaching a fresh high of $43.89!We took profit on the first half at $44.60 for a 51% profit.Then, we exited the second half Wednesday at $47.60 for a 61% gain. 51% and 61% averages out to 56%Now, why did we get out? Simple — the stock was going climactic. The daily bars were growing so big that I was afraid of a flat out crash once momentum slowed. I did not want to risk giving back a 50%+ gain.And over the next 2 days, Corsair did in fact crash 25% off the highs in 2 days, as you can see in this chart:Let’s recap the 3 lessons you can learn from our #2 trade in November: 1) Do Not Trust a Hot Story Without a Technical Confirmation Corsair’s story was picture perfect — a hot PC gaming and streaming brand that 99% of traders never heard of. But the chart needed to set up before we bought. 2) When You Nail the Setup, the News Tends to Go Your WayNo one could have predicted we’d get assists from Jim Cramer and the Motley Fool. But when you get the setup right, the news tends to go your way. 3) Sometimes You Can’t Put a Hard Target on a StockIt would have been hard to predict Corsair going from $29.51 to $45.69 in a week, but it was a hot story stock that’s exploding on social media. Names like this can run faster than you think.Finally, I’ll issue 2 words of warning:If you are day trading Corsair, be very careful because even up here at $44+, it has a pretty wide spread and you can get chopped up easily.Thanksgiving week is always a tricky time for the market, and with low overall volumes, stocks like CRSR can really take you for a ride (up or down).Take care! And if you want my next big swing idea, give Strategic Swing Trader a try! Click Here to Learn About SST Or you can check out our Black Friday deals.
Continue Reading -->Where the Market Will Go After a Sideways Week
Usually it’s not good when the market bases because stocks don’t move very much. But last week, that’s exactly what Sami wanted to happen. Now that the market has been going sideways, what can you expect in the days going forward? In this video, Sami explains: – The points where he will turn either bullish or bearish – When he expects APVO to pop – Where to find a 1 2 3 pattern setup in BILI – Why he likes BKEP as a long term play – Which pattern BLU is setting up for
Continue Reading -->Options In Play – Earnings On The Radar Week Of 11/27/20
It’s a Thanksgiving-shortened week but there are still plenty of earnings on the calendar. Tech and Retail will be the 2 sectors in focus.
Continue Reading -->Options In Play – Sitting Short And Waiting
Not everything is an instant winner and there are plenty of trade ideas that take time to develop. Sitting short can be tough in this market and that’s why making sure the expiration is right is important.
Continue Reading -->Options In Play – Timing A Breakout On TSLA
The setup was there on TSLA and today it delivered in a big way. TSLA’s move higher is a good lesson for option traders.
Continue Reading -->Options In Play – Are We Nearing A Trending Tape Again?
We have had a bunch of big market-moving events recently but as the calendar moves to late November and December, the news may dry up. And that could be a good thing…
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