Shoppers,

Affirm closed a gap last week that I’d been watching. A stock often has to close its gap before it can keep going in the same direction, so when Affirm started breaking below its recent lows one afternoon, I sent my members an order for puts.

We held them overnight. By the next morning they’d gone from $2.40 to $4.20.

I didn’t guess where to sell. I pulled my price target off the five-minute chart and sent it to my members in the morning trade plan. Affirm opened lower and traded right down to it.

I recorded a short video of the whole trade, from the daily chart to the exit.

Licia