Twitter Bounce?

Hi Shoppers,

I hate to be the person grousing and complaining, but when it comes to both Congress and the “Tech Giants”I’m not sure which I can’t stand more!

Something needs to be done to wrest some of the power these monopolies wield — and hopefully Congress can figure it out.

That’s a big hopefully!

Now for Trading

Looking at the Twitter (Ticker: TWTR) stock chart I am seeing a hammer candlestick at the bottom of a downtrend …

The hammer, you may remember, can signify an end to a downtrend …

It has a small body and longer lower shadow, showing how the stock traded lower but the buyers took over at the end of the day.

The hammer candlestick is said to be “pounding out a base …”

And I think TWTR could trade up from here.

Looking at the options, I like buying the Apr16 expiration with 22 days left.

I like buying the Apr16 61.50 calls with an implied volatility of 42.06 and selling the Apr16 66.50 calls with a 44.35 implied volatility.

I would pay $1.50-$1.55 for the Apr16 61.50/66.50 call spread.

And I would take my loss if the spread begins to trade down to $1 and take my first profits up around $2.50 and higher.

Trade Recap

My Target (Ticker: TGT) Apr16 190/195 call spread traded up and over $3.50!

So I took half off at $2.50 and the second half off at $3.40 for a 96% win!

Unfortunately, PepsiCo (Ticker: PEP) had more pop left than I expected and my put spread didn’t work out as well. But that’s OK, I stuck to my trading plan and only lost 30% …

So, still a nice net win over two trades!

And the Test Is …

Positive! Yep, I have Covid19.

It is quarantine time for me for the next 10 to 14 days. That’s the biggest bummer.

Now I need to find out if I have the antibodies and can skip that vaccine.

Thanks for Reading … See You Next Tuesday!

Licia Leslie

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