Warp Speed Into the Future (If We Have the Chips)

Hi Shoppers,

 

I’m amazed every day at how different my son’s world is than mine was at that age

 

Yes, I sound like the old person who says, “I remember when …”

 

But I don’t care!

 

(And, for the record, I don’t consider myself old.)

 

Because I’m not just talking about grandma telling us how much something used to cost.

 

The speed at which innovation has changed our everyday lives is incredible — and the list is long.

 

      • We literally went from having to make phone calls while tethered to walls … to carrying insanely powerful mini-computers around that we can instantaneously video conference on like we’re in freakin’ Star Trek.
      • Self-driving cars! My friend, Anne, and I went out to dinner after work here in Chicago and she did not want to parallel park … so she tried the automatic parking in her car. I’m telling you, it was bizarre! It perfectly parked in this narrow spot, with a super-high curb and cars all around us. It was kind of weird — but truly amazing.
      • We also have-voice controlled artificial intelligence answering our commands to run our home’s ecosystems. Thanks, genie!

 

Plus there’s contact tracing, 3D printing, cryptocurrencies, NFTs and social media up the wazoo.

 

Who knows what is coming at us next?

 

But guess what it takes to make all these things, plus a gazillion (technical term) other things I haven’t listed, work?

 

 

Semiconductors. 

 

Yes, those chips that we’re having a MASSIVE shortage of, as I have previously written about.

 

Thankfully, I haven’t encountered a shortage of good trade ideas — and I’ve spotted an interesting candlestick formation in a semiconductor stock that you’ll want to check out.

 

Game ON

It looks to me like there is a base forming in the ON Semiconductor Corporation (Ticker: ON) daily stock chart.

 

The stock traded straight down since the April 27 high of $43.98 to the low of $36.22 on May 4. 

 

It has since bounced, closing at $38.63 on Friday.

 

 

I think ON can trade back to its recent highs of $44.

 

I like buying calls in the May21 expiration cycle. Since they are the monthlies, they have narrower markets and more volume.

 

I would pay $.95-$1.00 for the May21 39 calls, which are just out of the money.

 

 

Because I think the stock is heading back to $44 and these calls are inexpensive in terms of dollars, I will not sell any calls against them.

 

With two weeks to go, there really isn’t any premium in those out-of-the-money calls to sell.

 

I will take my loss on these if they trade down to .65 cents. I will begin to take profits $2 and higher.

 

Thanks for Reading … See You Next Tuesday!

 

Licia Leslie

 

 

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