This $3 call option is setting up to be a solid play. The downward pressure last week paved the way for a nice move and we have been watching this since Sept as a move to capture weakness.
We are going to get a lot of info on big tech this week and what will be very interesting is how Wall Street responds to how these big AI names are managing their debt and if they are showing hope of any profit from these massive loans.
Here is the chart and trade we are looking at and a quick update on our rotation picks from last week.
This trade is a bit like working in a mirror. SQQQ is an inverse ETF that tracks the QQQ, but moves in the opposite direction. When the QQQ goes down, SQQQ goes up. This allows us to take a call trade that wins if tech drops.
The Dec 18 45 calls are at an affordable 3.18 this morning. We have some solid signs on the chart but also one key point of interest.
The resistance point a 40 is a key for the SQQQ. We are going to watch that closely today. It is possible that will hold the ticker down at first but if it breaks through the move upward should be big.
The two trades we looked at last week to exploit money moving out of tech had some different results. My NEM trade fell apart and I would cut it loose at this point. But Keith Harwoods HD trade really did well. It jumped about 60% and offered a nice exit window before it pulled back.
Well shoot out an update on the SQQQ trade later today.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
Recent Comments