list of TOWs
For the Trade of the Week I am looking at LOW. I like the structure it’s holding on the daily and intraday, and underneath it is a weekly slingshot squeeze. For the idea, I am looking at 170/185/200 call fly the week before earnings to take advantage of the move in a way that offers some protection and remains outside the expected move for the center strike.
Inside of the larger swing, we have a closer pullback zone of risk in SHOP, which is also a royal setup.
PYPL could run into earnings, or it could trade more sideways. This strategy should take advantage of either scenario.
Given we are starting 2021 with extraordinarily rich valuations in equity markets, gold is a must-have asset in portfolios.
With crude oil heading higher and XLE benefiting from strength later in the year, there could be some more upside in a window dressing/Santa rally and XOM is the relative outperformer in the XLE ETF. The idea is to scale into a long call position at one or each of the three entry levels, with the “aggro” being the smallest position size.
My TOW will be OSTK because I wanted to find something that was setting up on a longer term basis, since we have holidays coming up. I like OSTK because it is at the Monthly 10 SMA, double bottom on the Daily, and is at the Hourly 50/200 SMA.
There’s been a big focus on TSLA this week but I think there’s more opportunity in it and will be looking at the UBFly for a high probability trade.
As stocks move forward into December, it behooves us to look back at the past. November’s seasonal optimism generally extends into December. Beginning in the 1940’s, the S&P 500 has logged an impressive average gain of 1.5%, making December the third most profitable month of the year — while also logging a month over month increase 73% of the time. Don’t mess with a bull market!
I am using MSFT and am bullish for a rebound of large cap tech into the end of the year—I will use a regular Butterfly and target the 225 area for 31 DEC. As the market has been so crazy and we could easily pull back, I will manage with a tight stop and/or limit my size with 3 contracts, as discussed in the video.