Trade of the Week
Bull Put Spreads in Software Name Trading at Historically Cheap Valuations
Adobe (ADBE) started to bottom out with peers after it retested the 335 level and back to mid-2023 levels with its valuation now at just 17X earnings which is a 10 year low along with the stock trading at 6.5X sales even as it still projects to grow revenues 9% the...
Cyber Security Name Sets up Quick Breakout Trade
Fortinet (FTNT) shares of the cyber security name are showing fantastic relative strength as closed above monthly value and the 55 day EMA last week after seeing a solid rebound from the 200 day EMA support in the market selloff. Peers like ZS and CRWD continue to...
Bull Put Spreads in China Ecommerce Name Seeing Massive Put Sales into Support
PDD (PDD) has pulled back to one year value area low support near 90 and starting to stabilize with China peers as it has seen massive opening put sales this month seeing value in the 90 price region. PDD is the Temu operator as a top ecommerce name and is overall...
Quick Breakout Trade Setting up for Video Gamer
Take Two Interactive (TTWO) shares of the video game maker are staying one of the stronger consumer names in the market and just a bit off the highs made last month near 221 before the selloff in markets drove prices back to the earnings gap that filled near 190 but...
ETF Sector Corner: Smart Play for Robotics Secular Growth Opportunities
Global X Artificial Intelligence & Technology ETF (AIQ)- This ETF tracks a market-cap-weighted index of developed market equities involved in artificial intelligence & big data. The expense ratio of 0.68% is modest and compared to its rival fund BOTZ is more...
Bull Put Spreads in China Gaming Name Rebounding from Key Support
NetEase (NTES) has pulled back to the 200 week EMA and large volume shelf of support near 90 on the weekly chart and surged higher to end last week back over the 21 week EMA and near the 100 level. Options flows have seen opening put sellers sustain at strikes...
Cyber Security Leader Sets up Quick Option Trade
CrowdStrike (CRWD) shares of the cyber security leader have shown great relative strength as one of the growth stocks that did not close below its early March lows and last week surged higher off a double bottom retest of that low. Now a breakout above 380 can see a...
Bull Put Spreads in Most Liquid Market Index Fund for Rebound
S&P 500 (SPY) in volatile capitulation markets like this its best to stick with ETF’s that offer more liquidity and overall diversification so this week sets up well for selling extremely juiced up options premiums in the index ETF’s like SPY and can really choose...
Relative Strength Crypto Name Poised for Surge if Market Rebounds
Strategy (MSTR) shares held up extremely well Friday closing up 4% as Bitcoin acted as a safe haven of sorts and MSTR still is above its 200 day EMA compared to crypto peers. Of course weekend gaps can change setups but if the market were to have a wild snapback...
ETF Sector Corner: Natural Gas Company Basket Set to Run Higher During Seasonal Strength
First Trust Natural Gas ETF (FCG)- This ETF gives investors an opportunity to achieve exposure to natural gas, an important fuel for both heating and cooling. For investors looking to bet on increased demand for a raw material used widely in power production, but are...