AFRM May Be Topping Out

By Licia Leslie

October 16, 2024

Hi Shoppers,


Affirm Holdings (Ticker: AFRM) has traded up to the top of my pitchfork and has a change in trend candle created yesterday:

The candle is called dark cloud cover and is found at the top of an uptrend and may be signaling a change in this trend.

 

Of course you need to wait for confirmation this morning of AFRM trading lower before shopping for those puts.

 

Implied volatility is a bit high, your best bet is the Nov01 expiration.

 

Use a close above $48.84 as your stop loss.

 

Trade Review

 

The iShares Russell 2000 Index ETF (TIcker: IWM) traded a high of $225.50 yesterday and those calls ticked a high of $3.50.

 

I sure hope you bought them and took your money. I made 82%.

 

Let me know if you did better at [email protected].

 

Thank You for Reading … See You Next Tuesday,

 

Licia Leslie

Licia Leslie

Head of Technical Analysis

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Licia Leslie

Licia Leslie

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About the Author

Licia Leslie

Licia Leslie

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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