Free Video Collection + Trade Idea

Hi Shoppers,


I am seeing a few things in the daily Twitter (Ticker: TWTR) stock chart:



On Friday, TWTR closed on its low, sitting on the support line.


After Friday’s ugly close, I think the whole market will be down this week, and I think TWTR is ready to trade down to $56. That would close the window created on April 30 and burst through that support line.


If the stock opens and trades lower today, I will be a buyer of the Sept. 17 61-strike puts.



The markets are narrow and they are trading decent volume.


I would pay up to $.91 for these with five days to go.


If I don’t get a quick move lower in the stock, these will decay pretty quickly.


I will cut my losses if they trade down to $.63 and begin tracking profit in the $1.60 area. 


If the market as a whole looks ugly, I will hang on to a few of these for the big win when TWTR trades down to $56.


Trade Review


In Alcoa (Ticker:  AA), I have let my Sept. 17 45-strike puts get away from me. With the market down like it was Friday, AA was up two bucks! GRRRR. I will try and salvage something out of these this week.


My Draftkings (Ticker:  DKNG) call spread didn’t do as well as I thought it would. I expected DKNG to trade up to $74 but it couldn’t break past that resistance and had a pullback. I was able to sell my Sept. 17 64/69 call spread at $.70 for a 36% loss. On to the next trade …


If you haven’t already, grab those free Women in Wealth videos here!


Access to different viewpoints and professional expertise is one of the best ways to become a better trader.


And these ladies are some of the best.


Thanks for Reading … See You Next Tuesday!


Licia Leslie

We All Remember

Hi Shoppers,

Check out the daily stock chart in JP Morgan Chase (Ticker: JPM):

Friday’s candle is a bearish engulfing candle — it is red and completely engulfs Thursday’s green candle.

I also highlighted the gap created on August 6, when JPM opened up $2. 

The Japanese candle system calls a gap a window, and stocks tend to revert back to and close the window (gap).

I think JPM could trade down to $153 after closing at $157.36 on Friday.

Looking at the options, I like the upcoming week’s expiration cycle. It is the September monthly expiration, so the markets are narrower and there is good volume trading, which helps my entry price.

If JPM opens and trades lower, I will buy the Sept. 17 157.50-strike puts with an implied volatility of 20.86 and sell the Sept. 17 152.50-strike puts with an implied vol of 24.55.

I will pay up to $1.45 for this five point spread with five days to go.

I will take my losses if the spread trades down to $1 and begin profit taking around the $2.45 area.

Thanks for Reading … See You Next Tuesday!

Licia Leslie


DKNG Breakout

Hey There Shoppers,

 

Where will you be this Thursday (tomorrow!) at happy hour?

 

Let me clue you in …

 

You’ll be joining Mark Sebastian and the rest of the Option Pit Team for an incredible live event starting at 7 p.m. EST.

 

Mark will reveal the ONE key factor that separates you from pro traders — and what you can do about it.

 

Option Pit Director of Education Andrew Giovinazzi — with thirty years of trading and training experience — will also be joining Mark.

 

AND look for some of the best trade ideas of the year, plus maybe some other special guests …

 

Seating is limited so sign up right now.

 

Once you have secured your spot …

 

Check out my trade idea in DraftKings (Ticker:  DKNG) …

 

Bet on It

 

DraftKings (Ticker: DKNG) has been coiling (trading within a range) since Aug. 30 and finally broke out to the upside yesterday:

 

 

DKNG closed at $63.58 yesterday and I think it is going to make a run for $74.00.

 

Looking at the options, I like buying the Sept. 17 expiration cycle calls.

 

 

If DKNG opens and trades higher today, I will buy the Sept. 17 64-strike calls with an implied volatility of $42.95 and sell the Sept. 17 69-strike calls with an implied volatility of 50.38.

 

I will pay $1.15-$1.20 for this five-point spread with ten days until expiration.

 

If the spread trades down to $.80, I will take my losses. I will begin to take profits at $2.25 and higher.

 

Trade Review

 

      • My General Motors (Ticker: GM) Sept. 10 50-strike calls got away from me. I waited too long to bail and exited out of them down 80%. Stick to your stop-loss prices!! Not a smart move.
      •  
      • My iShares MSCI Japan ETF (Ticker: EWJ) calls were a big winner. The stock traded up to $70 on Thursday (which I called) — and even higher to close at $72.56 yesterday. I took my profits on those up 145%.
      •  
      • Over the long weekend, I recommended buying a call spread in PayPal (Ticker:  PYPL). Yesterday, I paid $2.50 for the Sept. 10 290/300 call spread. It closed with a $3.80 bid so I will definitely be looking to exit today around $4.00.
      •  
      • I also recommended a put spread in Cassava Sciences (Ticker:  SAVA), which did trade lower yesterday but the stock had gotten away from me and I did not execute a trade. I am a little leary of yesterday’s candle which could be an inverted hammer, meaning the stock may not go lower. I will watch it today and possibly buy a put spread in Sept. 17 cycle.
      •  
      • My last trade idea was buying puts outright in Alcoa (Ticker: AA), which opened higher but traded lower. If AA opens lower and trades lower today, I will pay up to $1.27 for the Sept. 17 46-strike  puts.
      •  

Don’t forget you cannot miss Mark Sebastian’s special limited-seating webinar tomorrow night at 7:00 p.m. EST.

 

Thanks for Reading … See You Next Tuesday!

 

Licia 

Two-Trade Monday

Hi Shoppers,


I hope you’re enjoying your long Labor Day weekend.


We are on our way to axe throwing today with the kids. (As opposed to my usual axe grinding in this column!)


By the way, it is not an easy activity. It’s hard enough to get the axe to stick into the wood, let alone to get a bullseye.



But it is a fun way to spend time together. It helps that we go with two other families and the boys are like brothers.


As for trading this week, I am seeing two stock charts that look like they are ready for a pullback.


Two Trades


The first stock is Alcoa (TIcker: AA), which has had quite the run since its recent low on August 19 of $36.61.



AA closed at $47.21 on Friday, forming a doji candle that could be signaling the end to this uptrend that resulted in a gain of 28% on the stock price.


I think AA can trade back down to at least $42, maybe even $40, and I think we can get the move this week.


Looking at the options, I like the Sept. 10 expiration cycle:


If AA opens and trades lower on Tuesday I will pay up to $1.05 on these. 


I will exit losses at the $.70 area and take my profits at $2.00 and higher.


The other stock is Cassava Sciences (Ticker: SAVA).


Wooo-weee that is one ugly chart:



Friday’s candle is a bearish engulfing candle which means this downtrend has not ended — there is room to go lower.


The option prices are pretty pumped, which allows for my favorite spread — the vertical spread.



If SAVA opens and trades lower on Tuesday, I will be a buyer of the Sept. 10 50-strike puts with an implied volatility of 165.99 and a seller of the Sept 10 45-strike puts with a higher implied volatility of 178.57. 


Big difference in vols means I can get a good price on the vertical spread to play the downside.

 

I would pay up to $1.95 for this spread. I will take my loss down 30%, which would be around $1.35, and begin profit taking once the stock nears $45. The spread will be trading close to $4 due to the close expiration time.


Now I am off to kick some axe!


Thanks for Reading … See You Next Tuesday!


Licia Leslie

Stock Gaming?

Hi Shoppers,


After PayPal (Ticker:  PYPL) reiterated on Monday that they are considering adding stock trading to their platform, the stock jumped $11.


And has created a bull flag for the remainder of the week. Check it out: 



On top of the bull flag, Friday’s candle is a bullish engulfing candle.


I think PYPL is going to close the gap created on July 29th. That would take it back to $296.71.


Looking at the options, I like the Sep17 expiration cycle:


I like buying the Sep17 290-strike calls and selling the Sep17 300-strike calls, paying up to $2.90.


I will take my losses on this spread if it trades down to $2.00, and begin to take profits around the $5.00 area.


Thanks for Reading … See You Next Tuesday!


Licia Leslie

Save Money. Live Better.

Hi Shoppers,

 

I am seeing a bullish candle in the Walmart (Ticker: WMT) stock chart:

 

 

Friday’s candle completely engulfed Thursday’s red candle, which could be a signal of a bounce.

 

And yesterday’s candle confirmed the end of this mini downtrend since Aug. 18.

 

I think WMT will trade back up $152.

 

Looking at the options, I will pay up to $1.75 for the Sept. 17 148-strike calls.

 

 

There aren’t any calls further out of the money to sell, so I will just buy these outright.

 

If they trade down to $1.20, I will take my losses. On the upside, I will begin to take my profits around the $3.00 area.

 

Trade Review

 

      • The General Motors (Ticker: GM) Sept. 10 50-strike calls have gotten away from me a bit, but I do believe these could make money by Friday. If I don’t get a move to the upside today, I will close them.
      • The iShares MSCI Japan ETF (Ticker: EWJ) made the move higher and traded $68.69 yesterday. My Sept. 10 68 calls traded higher, but the volume wasn’t there. This is very important when you are deciding on the size of your trade. If an option class isn’t trading very much volume you could get stuck holding your options or selling them at reduced prices. I will exit these by Friday.
      • In Coca-Cola (Ticker: KO), my Sept. 17 55.50-strike calls are up nicely, I will sell these $1.25 and higher.

Thanks for Reading … See You Next Tuesday!

 

Licia Leslie

 

  

Choosing the Right Expiration

Hi Shoppers,


I think Coca-Cola is ready for a change in trend. Check it out:



KO has been in a downtrend since its high on Aug. 17 of $57.56.


It closed on Friday at $55.65.


I think Friday’s candle is a doji, which can indicate a bounce or change in trend in KO back to $57.50.


Looking at the options, I like the shorter term expirations. I need to compare the Sept.10 expiry to the Sept. 17 expiry:




The 55.50-strike calls are just $.15 in the money.


The Sept. 10’s are offered at $.61 with an implied volatility of 12.08 and the Sept. 17’s are offered at $.69 and trading with an implied vol of 11.57.


Which is the better value?


The Sept. 17 calls offered at $.69 with the lower implied volatility is the better purchase. You are paying an extra $.06-$.08 for another seven days — totally worth it.


If KO opens higher and trades higher today, I will pay up to $.70 for these calls.


I know this is a simple exercise, but it’s one that will help you make more money.


Thanks for Reading … See You Next Tuesday!

Licia Leslie

Japanese Stock Idea

 Hi Shoppers,

 

Hi Shoppers,

 

I dug deep this weekend to find an interesting candlestick formation in the iShares MSCI Japan ETF (Ticker:  EWJ).

 

Next, I began to research current events in Japan. That, of course, led to plenty of Olympics coverage.

 

I also read through numerous articles related to Japan’s economy and there was the occasional odd headline, like “Why Young People in Japan Stopped Having Sex.”

 

Not sure we wanted to talk about young people having sex …

 

But thinking of Japan’s economy, remember when we were so frightened of the Japanese taking over all the real estate in the U.S. in the 1980s?

 

The icing on the cake was in 1989 when Mitsubishi bought Rockefeller Center for $846 million.

 

So, I looked at the Japanese companies stock charts and this is what I found:

 

Sony (Ticker: Sony) traded 403,000 shares on Friday.

 

Toyota (Ticker: TM) only traded 140,000 shares and Mitsubishi (Ticker: MSBHF) traded 670 shares.

 

I was shocked.

 

In contrast, Chinese giant Alibaba (Ticker: BABA) 31,718,000 shares traded Friday alone.

 

XPeng (Ticker: XPEV) traded 6,821,000 shares and Baidu (Ticker: BIDU) 3,618,000 shares.

 

Where was China in the 1980ss?

 

Believe it or not, it was enjoying a newfound freedom after the death of Mao Zedong in 1976 — he had China in the grip of poverty and fear for ten years prior to that.

 

The government opened the market, bringing in imported goods, books and entertainment from other countries.  

 

Studying in Tiananmen Square 1981.

 

People returned to the cities from communal farms, and speech wasn’t strictly policed.

 

But it didn’t last. 

 

By 1989, people, mostly students, began to gather to protest for a more open democratic government, free speech, free press and a better education system.

 

The protest grew to a million people and sadly ended as the Tiananmen Square Massacre.

 

Where are we all now?

 

Well, financially we are all three there at the top ranked by GDP:

 

 

Socially, culturally, and all else that matters. Well, that’s a different story.

 

Trade Japan

 

Scouring the stock charts, I found this in the iShares Msci Japan ETF, which traded over 4 million shares on Friday:

 

 

Friday’s candle is a bullish engulfing candlestick as it is green and covers the whole red body of Thursday’s candle.

 

I think EWJ can trade back up to $70 within the next two weeks.

 

 

I know the options volume and open interest numbers aren’t there — these options are not trading much.

 

But the market width isn’t too bad and I think the Sept.10 68-strike calls, $.13 in the money, are a good buy.

 

If EWJ opens up and trades higher on Monday, I would pay $.73-$.75 for these calls.

 

Trade Review

 

Last week I had two recommendations, Peloton (Ticker:  PTON) and General Motors (Ticker:  GM).

 

      • PTON did not follow through, so I did not execute the trade.
      • In GM I bought the Sept. 10 50-strike calls and paid $1.20. They closed at $.96 on Friday. The chart is still looking good and I believe these will be winners this week.

 

The Ford (Ticker: F) chart is looking bullish to me also so I am sure there are some cheap calls to be had in there, as well …

 

Thanks for Reading … See You Next Tuesday!

 

Licia Leslie

It Takes a Trading Village

Hi Shoppers,


Check out this beauty of a stock chart shown to me by one of our Option Pit members:



What is it?


Why it’s General Motors (Ticker: GM).


GM has been in a downtrend since its high of $64.30 on June 7, trading down to $47.07 on Monday and creating a beautiful hammer.


Yesterday’s trade supports the reversal with a confirmation candle to the upside.


I think GM can trade back up to $53.50 and possibly to $55.00.


Looking at the options, I like the Sept. 10 expirations cycle with 18 days to go:



I will pay $1.05-$1.10 for the Sept. 10 50-strike calls.


If these calls trade down to $.70, I will take my losses. On the upside, I will begin to take profits when these trade towards $2.00.


Profit in Pumps email subscribers, don’t forget to call Customer Care today between 9 a.m.-5 p.m. at 888-872-3301 to get on board with the Trading Legion.


Thanks for Reading … See You Next Tuesday!


Licia Leslie

Land of Opportunity

Hi Shoppers,


I think Peloton (Ticker: PTON) could benefit from the latest mask mandates and vaccine regulations.


Here is the stock chart:



PTON has traded down from a high of $127.57 on July 20 to $108.07 on Friday’s close. That’s down 15% in just over a month.


I am seeing Friday’s candle as an inverted hammer, which can signal the end of a downtrend.


While PTON is announcing earnings on Thursday, I am comfortable owning a call spread through the earnings report.


Since the earnings report is on Thursday, this week’s options have the higher volatility. Therefore, I am going out to next week’s expiration date of Sept. 3.



If PTON opens up and trades higher today, I will buy the Sept. 03 109/115 call spread and pay up to $2.45.


If this spread trades down to $1.75, I will take my losses.


I think PTON can trade back up to $114-$115. I will take profits when the spread trades up to $3.70.


Be sure to be living your dream.


Thanks for Reading … See You Next Tuesday!


Licia Leslie