Hey traders, Lance Ippolito here! Welcome to our Weekly Rundown, where we’ll share some of our top trading ideas — and our biggest winners!
Guys… we did it again. First, last week we scored a 926% winner on SNAP calls. This week, we bagged a 455% winner on PINS. Printing money, baby!
More on this week’s MONSTER win down below… on to this week’s Rundown!
I love short-term trades, and the dip in Chinese tech stocks in the American Depository Receipt (ADR) names have presented some fantastic opportunities in recent weeks.
If you've been following me for a while, then you probably know all about how I bought the dip in DiDi for some spectacular results...
But as much as I love these trades, I have to be honest — they come with their fair share of risk that shouldn't be brushed off, especially considering recent events.
Back in the good old days of a few months ago, the major risks on ADR stocks usually came in the form of short reports.
We saw this happen with stocks like Techdu — now trading as Gaotu Techedu Inc. (NYSE: GOTU), and Tal Education Group (NYSE: TAL).
At the time of the reports, those companies were trading at ridiculous valuations and short sellers called them out for good reason...
And if that’s all we had to worry about, that would be great.
So Do We Buy the Dip?
In recent weeks, the Chinese government has been turning up the regulatory heat on its own companies. Earlier this month, Beijing pulled rideshare company DiDi Global Inc. (NYSE: DIDI) from app stores.
That environment is making things tough for investors to buy and hold these stocks because there’s too much uncertainty.
So here’s what I’m doing... I will day trade these stocks until the cows come home, but I’ve only made like 10% or 20% — tops. That’s not a lot in context. But there’s just too much risk to justify buying and holding these.
If you have to buy these crazy dips ask yourself this a couple of questions...
If the Nasdaq 100 falls 10% with big tech reporting earnings soon, will China stocks really go up? No.
If the U.S. market stays flat, will there be serious dip buying while Chinese stocks rally 20%... 30%... 40%? Probably not.
You can’t even hide in the ETFs for some exposure because the charts are horrible.
So limit your risk. Or, even better, find opportunities elsewhere.
BIG Wins
After last week’s MONSTER 926% win, we had a few more BIG winners from our Weekly Blitz Alerts trading strategy, including the aforementioned 455% grand slam — that’s back-to-back weeks with grand slams!
So last week in a special session of my Weekly Blitz Alerts Live Trading Room, we booked the best trade of the year to date with a 926% overnight win on Snap Inc. (NYSE:SNAP).
That’s a record that’s likely to stand for a while, but that doesn’t mean we won’t try knocking it off its pedestal with each and every trade!
And this week, we gave that SNAP trade a run for its money — while padding our bank accounts in the process!
In Wednesday’s trade room, we took a look at a major flow hitting one of my favorite targets — Pinterest Inc. (NYSE: PINS). If you’re not familiar with PINS, it’s a social media site where people share photos of things they like — food, furniture, clothing and all that. It’s probably responsible for the “theme” of the last wedding you went to.
The Blitz Tracker spotted bears making several big moves in the PINS August monthly puts. With earnings set to report the day after industry leader Facebook Inc. (Nasdaq: FB), we took a position in the July 30 $72 puts at $2.25 per contract.
The pop culture juggernaut reported earnings after the bell on Thursday, and it was… not great. While earnings and revenue were better than expected, PINS showed a 5% decline in daily active users. Struggling user growth has sparked several tech sell-offs — including one in Facebook — the past two weeks, and PINS was punished.
Shares sank around 18% in after-hours sessions, helping our weekly options escape gravity and open at $12.50 the next morning for a spectacular 455% gain from our entry in just two days!
I wonder if Pinterest has a bear-themed living room?
+455.55% on PINS July 30 $72 CALL.
Entered on July 28 at $2.25 a contract.
Exited on July 30 at $12.50 a contract
On Tuesday, institutional buyers stepped in to pick up loads of contracts in mobile game developer Zynga Inc. (Nasdaq: ZNGA), and The Blitz Tracker caught them red-handed. Those buyers singled out the weekly Aug. 6 $10.50 strike call, shelling out for over 13,000 contracts ahead of earnings on Aug. 5. So naturally, we joined the fray...
The very next day, Zynga got a shout out on the CNBC Halftime Report. The feature helped ZNGA shares pop over 2% on the day, and an alert went out to Blitz Alerts members to take some profits off the table for a 36% win in 24 hours!
+36% on the first leg of ZNGA (Aug. 6 $10.50 CALL).
Entered on July 27 at $0.25 a contract.
Exited on July 28 at $0.34 a contract.
Be sure and check out our Weekly Blitz Alerts for more BIG winners like this! Printing money, baby!
Where the SWARM Goes, Money Flows
Just keeping that mantra in mind could help traders achieve gains like…
119% from AMAT, 135% from LYFT and 210% from WKHS.
All one has to do is track the Swarm back to the hive, and they’ll find the honey again and again…
If you’re looking for more compelling trade ideas and stock market musings to read and help you prepare for what lies ahead, here’s what other experts at WealthPress are saying:
Disclaimer & Disclosures The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
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