I’m Greenlighting These Trades
I’ve got some trade setups ready to go for you today.
Yesterday the market saw a big breakout.
And today we pulled back a bit.
Does that mean the game is over?
I go over several names I’m looking to move on in today’s Trade Talk Tuesdays episode.
Click the image below to see the trades.
In the SPX, we basically had a range break higher on Friday. So far this week, we’ve been getting a retest – this is normal. Now, if the bulls want to push this higher for a couple of weeks, they need to hold the top end of that previous range. Resistance becomes support on a retest in healthy markets. This market is anything but healthy, but the theory still applies from a technical analysis perspective.
YOUR ACTION PLAN
So, with that in mind, here are the two plays I’m looking to get into…
Target Hospitality (Nasdaq: TH) – This name was on my weekly watchlist, which went out yesterday morning. Today I’m “greenlighting” this trade and suggesting an option. I want to buy the February 17 $15 calls on a pullback to $14.50-$15.00, and I’ll be looking for a move to over $17 – maybe as high as $20.
General Dynamics (NYSE: GD) – This is a new name to the watchlist with a classic TPS setup and a great risk/reward ratio. I want to buy the February 17 $250 calls on a move to $245, stop on a daily close under $243 (very tight risk) and then look for a move higher – over $255 and perhaps to $260 – into earnings. Note that GD reports earnings on January 25… I would NOT hold these options through the earnings report.
P.S. If you have any questions about my trades, feel free to contact me at email@example.com.
P.P.S. If you’re looking to see more trades like these in real time, I recommend checking out The War Room. Bryan and Karim are on fire to start 2023… with a 100% win rate on their first 10 trades! Right now they’re guaranteeing you’ll receive 252 winning trades in your first 12 months of membership.
“STO META Jan’24 40P for $0.86, BTC for $1.22, +29% [in 50 trading days]. Nice play, Karim!”
– Robert D5
“I closed the 1 Shares/Contracts [on HSY] I opened at $6.60 for $7.40. 12% gain [in one trading day]! Thanks BB!”