When you see a really strong trend you get excited. When you see a strong trend in this market, you get really excited.
Insulet Corporation, PODD, manufactures insulin delivery pumps to help people manage diabetes. There are a handful of competitors in this space and while innovation has big time gaps between big updates it seems like the players in the insulin pump world are pretty much in sync. Dexcom, DXCM, just announced it is releasing a new version of its continuous glucose monitor and is getting a lift from that. But PODD is really taking off and it looks like it has more room to run. Since we know that the news may lead us to a trade but the chart will show us how to make the trade, let’s take a look.
There are a three key things that stand out on this chart. We can see that there was a big move a couple weeks ago that pushed it above the 10 day moving average (the green line). That move kept going through the 200 and 50 as well. We can also see the MACD cross and trend up. The space in the MACD also shows bullish strength. There is no reason to think PODD won’t take a shot at getting back up to the previous high around 280.
If you were to couple this kind of move that could hand out a nice 10% gain if the move continues with the right options strategy, you have the potential to turn that 10% into 100% or even more. Don Fishback outlines some of the best options strategies and the environment that give them the best odds of winning in his quick start guide. You can grab it here.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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