The markets are running hot post-election – we’re seeing the S&P 500 at +3 ATR and the QQQ knocking on that same door.

When we get this extended, it’s typically tough for indexes to maintain these elevated levels, especially heading into OPEX week.

But here’s what’s got me excited: While everyone’s chasing overextended names like Tesla (+4-5 ATR) and some of the bitcoin names, I’ve spotted a setup in META that looks absolutely solid.

Why META?

• Building a beautiful bull flag since early October
• Just tagged both the 8 EMA and 21 EMA (perfect technical support)
• Sitting in a daily squeeze with momentum shifting higher
• Not overextended like its big tech peers

I’ve got to tell you, this pattern looks really good.

Here’s what I’m watching:

(Click to enlarge)

The Setup:

• Looking to get long around $577
• Stop on a daily close under $567 (just below our point of control)
• Initial target at previous high of $603
• Extended targets at $616 and $632

For options traders, I’m eyeing the December 20th $600 calls.

They’re not going to be cheap options, but we’ve got 38 days for this setup to work.

If you’re trading with a larger account, consider the December $570 calls with a .63 delta for a more conservative approach.

For my full take, click the image below and watch my video.

YOUR ACTION PLAN

I’ll be looking to accumulate META around these levels and work it up to our targets.

Whether you choose to go with shares or options, this setup offers a solid risk/reward in a name that isn’t stretched to the upside.

Want to see how I trade setups like this in real-time?

Click here to join me in my trading room where I break down these opportunities live.

TESTIMONIAL TUESDAY

“Nate… I took 1000% on SOFI 12 calls for this week. Great start, so sitting quite here after cashing some DECK, DOCS, ROOT and HOOD.”
– Kavi

“FSLR in @ 5.60, out @ $8.38, cool +44.47% in less than an hour! Thank you BB!”
– DE

I closed the 1 Shares/Contracts I opened at $2.95 for $5.00.
69% in four days. Thanks Karim!”
– Randall L2