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- WKHS update & new trade idea
WKHS update & new trade idea
$2,000 Small Account Journey starts Monday (targeting $100K)
Good morning,
Trades I’m working:
The IWM (small-cap index) is ripping the last few days, no doubt due to Trump putting pressure on Powell to lower rates. The $225 calls alerted and bought are doing quite well with the IWM at $229 already and expiration at end of month. Today is a good day to lock in that win before time decays starts to kick in fast next week.
I am long 6,000 WKHS into Thursday at $1.72 looking for $2+ and possibly a move to $3 if the right merger news lands this week. This would give me somewhere between $1,800 and $6,000 in profit if I’m right about the trade.
I am short 11,000 GEVO into Thursday at $1.82 looking to cover the trade near $1.60 support for a few thousand in profit if it works. The earnings pop isn’t likely to carry the name much longer but if it holds $1.60 after the cover it’s probably a good long back to $2 again too.
My long-term hold of LQMT stock is doing well as traders speculate on rumors, from top Apple analysts, that the iPhone fold will feature a Liquid Metal hinge. This is very much like a biotech running into an FDA ruling but whereas Apple’s product launch is the catalyst — and a big one. Here’s a video that explains what’s going on. It’s a big story and the speculation alone could continue to drive the name higher. I buy and sell this one without notice since it’s a long-term trade. For more core position I’d like to see $.20-$.50 with an outside shot of $1+. Last time Apple announced news, investing $20M into LQMT, shares jumped to nearly $2.
My bull puts on DUOL are off to a bad start. I sold the $340 put and bought the $330 put, expecting gap recovery to act as support along with the 10-day EMA. So far it’s in the $320’s but there’s time for this high ATR trade to bounce so let’s see how Thursday goes, it’s likely I cut it for a loss without a bounce today.
INTZ and GS are a few small-caps I’m watching this morning.
If INTZ pivots up at $2 there’s good range to $3. I like how explosive INTZ can be at times, but am uncertain if this pattern is strong enough to make the move.
GS might be the better trade given the big bounce a few days ago and support of the 10-day EMA now. It’ll have surely collected some short sellers who could bid it up and trigger another squeeze if shares cross $2 and make a move for $3.
I’ll alert my trades in the chat room (click here) or by email so stay tuned.
Eat. Sleep. & Trade!
Jason Bond
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