Doubling Down On A Magnificent 7 Name
If the current rotation out of Mag-7 stocks proves short-lived, this should do well. If not, not.
ChatGPT4o continues adding tell-tale misspellings to its images.
Doubling Down On An Earnings Trade
Earlier this month, we placed a bullish bet on a Magnificent 7 stock.
Trade Alert: Post-Earnings
Three Trades On Track For 200% Gains As we mentioned in our Exits post on Saturday, two of our open trades were on track for 200% gains, one on SalesForce (), and one on Carvana (). With today’s move in Tesla () shares, we now have three trades on track for 200% gains. The max gain (of about 207%) for our Tesla trade in the post below is with Tesla trading over $205; Tesla is trading at about $229 as I type this.
In that post, we wrote:
Today’s trade is another post-earnings trade. Like SalesForce, this is a stock that dropped post-earnings, but unlike SalesForce, this one beat on both earnings as well as revenues. Like SalesForce, this growth tech stock now has a Chartmill Valuation Rating of 6 (on a scale from 0 to 10). Some other ratings it currently has:
Profitably: 8
Health: 7
Growth: 7
Technical: 10
Piotroski F-Score (on a scale of 0 to 9): 8
I placed a limit order on this one a couple of weeks ago, and it just filled today. This is a bet that the stock will climb about 3% from here over the next few weeks. If it does, we’ll be able to exit for about a 200% gain.
After today’s drop in the stock, as part of what looks like a heavy rotation out of Mag-7 names, we’ll need about an 11% move from here to get the maximum return on today’s trade, but that is well within the expected move for this name post-earnings.
If the current rotation out of Mag-7 stocks reverses before this stock releases earnings in a couple of weeks, we could make a ~220% gain on this trade; if not, we could lose 100%.
Details below.
Today’s Bullish Mag-7 Bet
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