David Prince Says Trade Less Right Now
The market has shifted drastically in the past few weeks. And many traders are hurting themselves by trading too many positions. David Prince explains the importance of trading less in the current environment: David discusses: How trading less allows you to not be controlled by the market Why to focus on the best ideas The importance of taking your wins How the best traders adjust quickly Get David’s new free ebook here.
Continue Reading -->NVIDIA: 4 Sell Signals in One Day
I came into NVIDIA’s (NVDA) fourth-quarter earnings report expecting some level of disappointment. I told Power Plays Options Subscribers the following on Wednesday: I believe NVIDIA (NVDA) is at risk of a post-earnings decline so I am adding this position: Long NVDA February 28 $120 Puts These puts look good in the $2.75 to $3.50 area (or lower). With Nvidia’s decline off its highs and lower valuation, some believe a lot of bad news priced in. I disagree. We’re still looking at a stock with a $3 trillion market cap and rosy expectations for endless long-term growth. So to me, the odds favor a post earnings decline. If this report isn’t anything less than 100% shoot-out-the-lights perfect, we could see a hard drop below the $120 area. Incidentally, this was the first put options idea in Power Plays Options history. We did get the hard drop in NVDA stock below $120 — but it unfolded over the course of 2 days. In fact, NVDA put in 4 sell signals the day after earnings (yes, 4 sell signals in one day) as you can see in this chart: I love teaching my Sell Rules — and this is an interesting case study because you so rarely see so many hit in one day. Here’s how NVDA’s decline happened so fast: Sell Signal #1: NVDA hit $135+ the day after earnings, a good spot to trim since the report was solid but not spectacular Sell Signal #2: the stock broke down through $133,73, a prior high. Sell Signal #3: NVDA went red and lost the 8/21/50 day moving averages Sell Signal #4: NVDA breaks the $124.44 prior low. It also broke the 200 day moving average here, though I didn’t put this in the chart above to avoid it being too crowded. And on Friday, we got that hard break below $120, with NVDA hitting a low of $116.41. We cashed in the puts for Power Plays Options shortly after the open for a 62% gain. I was tempted to roll the dice and hold the puts longer, but I didn’t want to take the risk of them turning into a zero. That turned out to be the right decision because as of the time I’m writing this, NVDA is over $122 and those puts are headed towards zero fast. *Scott Redler Positions Disclosure as of 2025-02-28 at 10.32.43 AM
Continue Reading -->The 1 China Stock I Still Like
Sami identifies his favorite China stock — could it be the next Alibaba (BABA)? Sami goes over: 1 China name that could buck the trend, thanks to an awesome hourly chart The meaning of Friday’s breakout failure Why Sami believes SPY will hold the $590 level — the real danger zone What a “narrow range bar” is Why he is short-term bearish, long-term bullish The reason China stocks could be about to drop The bull case for Moderna (MRNA) An automotive stock that looks awful And MORE! By the way, if you want to accelerate your trading progress in a big way, consider joining Sami’s Mentorship starting in April.
Continue Reading -->The Market Looks “Wildly Bullish” Thanks to Failing Bears
JR Romero argues that the market looks “wildly bullish” because the bears can’t stop failing. JR goes over: His SPX target, which remains intact Why the bears drop the ball again and again What the market’s internals really mean How new buyers keep coming in Why this is is an amazing market for day traders in stocks like Hims (HIMS), Tesla (TSLA) and Super Micro (SMCI) His #1 airline stock, and why he is bullish on airline/travel names Why Palomar (PLMR) can go from $122 to $200 Why Crowdstrike (CRWD) is so hot The bull case for Palo Alto Networks (PANW) And many, many more names – JR’s watchlist is HUGE week!
Continue Reading -->This Stock Can Double
Sami still absolutely loves Affirm Holdings (AFRM) He picked it long at $53.21, and it’s now at $80. Where can it go from here? It can double… Sami also goes over: Why SPY & QQQ still look bullish – despite what the bears say The one index that is doing its own thing How he avoids being controlled by the market His favorite 3D printing name Why Fiverr (FVRR) looks like his winners Zoom (ZM) and Roku (ROKU) An AI stock that looks set to drop hard By the way, if you want to accelerate your trading progress in a big way, consider joining Sami’s Mentorship starting in April.
Continue Reading -->How to Trade Options on Earnings – DASH Case Study
At the end of last year, I named DoorDash (DASH) one of my top picks for 2025. In my 2025 Market Outlook, I said the stock could hit the $225 to $240 area — which I still think is doable. But today I want to show you how Power Plays Options (my new options alert newsletter) navigated the company’s Q4 earnings report on February 11. We’ll go over: Why I used a call spread instead of straight calls Why sacrificing some reward led to a bigger gain How you can get my next options idea For reference, here’s my take on DASH from the Market Outlook Report: (click to enlarge) The DoorDash situation was tricky for several reasons. I liked the technical setup and the stock’s leadership status. So I wanted to be long via call options. But it wasn’t that simple. The stock had already gone up 16% in 2025 after a 70% run last year. And the options were expensive. The market was pricing in an 8.9% move even though the stock tended to move about 6.5% after earnings. So I decided to use a February 21 $202.50 X $215 call spread. (meaning long the $202.50’s, and short the $215’s) The spread was at $3.05 when we sent the alert out, while the straight February $202.50 calls were at $5.60. Why this particular call spread position? Because while a call spread capped my upside potential, it lowered the cost of the position, offsetting the expensive nature of the calls. So if DoorDash went down or sideways after earnings, I’d lose much less than if I’d taken straight calls. And yes, despite what you’ve heard on TikTok… real traders lose money sometimes. In any case, I didn’t see DoorDash getting much above $215 in even the best-case scenario. I used a February 21 expiration to give me a little extra time in the position. This way, if the stock didn’t go straight up, I’d have more room to let it rebound. And that’s exactly what happened. DoorDash stock got hit on Wednesday after earnings… and then rose like a beast on Thursday before extending Friday as traders refocused on the long-term growth story. And here’s how the entire idea has gone so far in Power Plays Options. Note, this is a chart of the actual call spread — not DASH stock: We added the spread at $3.05 on Tuesday, took off half on the open today at $4.32. And as of Friday 2/14 at 12:45 pm ET, we are letting the second half ride with the spread over $7.40 — a 100%+ move. (note: there is a chance Power Plays Options will close out the remainder by the time you read this) Over the same time span, the straight $202.50 calls went from $5.60 to $8.80, up 57%. That’s a nice gain — but it’s actually a smaller percentage increase than the $202.50 X $215 call spread we used in Power Plays Options. The straight calls have a smaller gain because they were so much more expensive in the first place. So by sacrificing some potential return, I actually increased my reward. Now, not every idea works out like this — but it’s awesome when they do! Featured: Get My #1 Options Idea Each Week If you like actionable options ideas delivered in plain English every week, join Power Plays Options today. It’s just $199 to get started. See why now’s the right time to join. *Scott Redler Positions Disclosure as of 2025-02-14 at 12.19.34 PM
Continue Reading -->Why I Bought Apple
Scott Redler appeared on Fox Business to go over the market action: Watch the latest video at foxbusiness.com Scott goes over: The impact of the market lifting after the hot CPI report so fast What Apple (AAPL) and Tesla (TSLA) told him about the action Why he got back in Apple, and the impact of the Alibaba (BABA) news The reason Meta (META) is tricky now The new China name he got into on Wednesday Why the PPI report has less “shock value” than the CPI What traders should really pay attention to – the price action How Treasury yields impact equities And more! Featured: Join Scott Redler’s Plays for $99 Get Scott’s #1 idea each week. That’s 52 weeks for just $99. (not a typo) Be on the list for the next idea: See why now’s the right time to join. *Scott Redler Positions Disclosure as of 2025-02-13 at 10.13.53 AM
Continue Reading -->Why Tempus AI Is Going to $120
Tempus AI (TEM) has been a monster — and JR sees more good times ahead. JR shows you: Why the SPX needs a shakeout like we saw in August, which could set up a buying opportunity The risk of a “flash crash” Why he likes to trade “sticks of dynamite” His favorite types of patterns, and why they may not work now The strength in REITs His case for Nancy Pelosi favorite Tempus AI (TEM) going to $120 Why Alaska Air (ALK) can go to $100 for a 35%+ gain Why AXIS Capital (AXS) can hit $150 for a 65%+ gain Why Crowdstrike (CRWD) is going to $500 for a potential 15% gain A huge potential breakout coming in a major pharma name And MORE!
Continue Reading -->The 1 China Stock I’d Buy Right Now
Sami says it’s too late to buy China stocks like Alibaba (BABA)… except for one name he still likes: Sami goes over: Why it might be late to chase Tesla (TSLA) How he got surprised by Alibaba (BABA) The only China stock he is still bullish on His single most interesting idea – a stock that’s been a total mess for years The power of his Monthly Transition A pattern, which keeps showing up in Sami’s wins By the way, if you want to accelerate your trading progress in a big way, consider joining Sami’s Mentorship starting in April.
Continue Reading -->How David Prince Builds A Trade
Trading isn’t just about charts for David Prince. He finds conviction in a trade by building a full thought package that includes many other pieces of information. David explains using Nvidia (NVDA) as an example: Learn: Why David was buying NVDA at 113 last week The indicators he uses in his trading that aren’t on charts And the importance of knowing the fundamentals of a company David is hosting a free webinar on Wednesday, February 12. Sign up here!
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