Plays for this week to consider, YTD Progress and more
Here are a few stocks I am looking at this week.
$AMD - After last weeks news that came out the stock has taken pressure on the possibility of a $30B purchase of another company.
Using the chart below and taking a look at the EMA lines, AMD should bounce at $78 dollars. I would sell $78P for 2 weeks out to collect premium, around $1.25-1.50, gets you about 12-15% return in 2 weeks. ($7,800 risked to earn $150 per contract).
Alright next up is $DPZ (Dominos Pizza). This one was a pain in the ass last week, I got screwed a bit holding a vertical put. It looks as it might continue to leak towards $375. If anything I would avoid, usually these stocks are range bound at best and don’t bounce for a few weeks, remember $LULU? Same thing it dropped to $300, and then range bound $290-$310 for weeks until it recently broke above.
Avoid or sell $370P for 2 weeks out to collect premium, though you need to put up $37K. (with Margin maybe half).
$FSLY - This stock is another momo/fomo/yolo whatever the hell you want to call it. It rubs like crazy and then drops, look at what I’ve circled last time it ran up it dropped like a rock. I would avoid shorting it, unless you wanted to get lotto puts. It clearly broke previous levels, but if you don’t have money to gamble, just sit out...
$ROKU - Did I miss the news on this stock or what? It’s over $220 now!! Wow. Look at how overextended it is becoming at this point we should see some consolidation and possibly a retest of the support levels in the lower 180s $QQQ and overall market cool off right before elections. Longer term vertical call credit around Dec 2020 seems a reasonable choice here sold at the money. (-220C / +$230C Dec 2020)
My favorite premium selling play on a weekly basis $JPM $95P weekly sale, it’s been doing well and paying over for several weeks, I believe it continues.
My favorite long term plays to watch $WORK (Continuation from last week), $SPCE consolidation in low $20s to hopefully break out higher on more news, $RKT starting to pump up again!
My favorite long term shorts on watch (CVNA, and $W) - these Covid plays should start to sell off as we get closer to vaccine news.. remember everyone is saying Spring 2021... so the market usually thinks 3-4 months ahead of time.. Dec 2020 is a good time to enter this, or early Nov.
That’s all folks! If you want a FREE TRIAL with our live trading group, please sign up today! See my YTD progress on my Schwab account. All my trades are posted in our live trading group.