When will semi-conductors stop going down?
When a bearish sector is the focus of seemingly every trader and market commentator, it can lead one to believe that everything is bearish. But that’s simply not the case. Consider the idea I shared last week in ROST, where the August 14th $240/$255 call spread was trading for $3.85 with the stock trading $235.81. Let’s check the chart:
The stock is now trading for $251.03, and the call spread is up to $8.90, a 130%+ return. These opportunities in the market aren’t found with luck. They are found with powerful AI tools like the Forecast Toolbox which continues to give me incredible trading ideas day after day. And you can try it out for free!
And this is a repeatable process. Today I found another incredible setup that reminds me of ROST, and this time it’s in Las Vegas Sands (LVS):
The chart itself looks nothing like ROST. ROST was testing highs, LVS is recovering from lows. But what is similar is the upside forecast from the Toolbox, with an incredible return projected after last week’s earnings announcement:
In the case of LVS, the upside is projected to just over $54. It’s tempting to repeat the call spread because it worked so well last week, but in this case, the out-of-the-money calls simply aren’t expensive enough to sell. But that’s because the options are cheap relative to the upside potential! For example, the August 21st $49 calls are about $1.20, which is an attractive risk-to-reward ratio if the stock can get to $54 in two weeks. If the price target is reached, those calls would be worth $5, a return of over 300%. That’s a setup I can get on board with, particularly with the success these ideas from the Forecast Toolbox have continued to generate for me.
As a reminder, the Forecast Toolbox doesn’t just give me one prediction every week or every day. It models out high probability moves for most listed stocks in the market. I can check every stock in my portfolio to make sure I’m positioned right when I’m holding my investments, and when I’m looking for a new trade, it provides a filtered list of some of the most explosive setups so I can find the next great idea for my trading portfolio.
So, make sure to take advantage of the free 7-Day Trial of the Stock Forecast Toolbox so you can see what it can do for you!
If you have any questions, never hesitate to reach out.
Keith Harwood
Keith@OptionHotline.com
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