Trade Alert: Taking Advantage Of Today's Drop
An options trade on an undervalued small cap ahead of earnings. Plus, a double-down trade on a crypto play.
Adding Small Cap Exposure
I had been thinking about adding some small cap exposure since last week’s market rotation, and came across one this week that looked promising. I haven’t been using LikeFolio’s social data as much these days, but I do read their emails, and they mentioned this company had an earnings score of +52 ahead of its release this week (the higher the number, the more bullish).
So I pulled up the stock on Chartmill and it looks compelling. It’s down single digits year-to-date, but its Technical Rating ticked over to positive (6 out of 10), and it has a Valuation Rating of 9 (on a scale of 0-to-10) and a Piotroski F-Score of 9 (on a scale of 0-to-9).
My plan here is to bet on it with longer-dated call options instead of a spread, so we can take profits on half if we get a nice pop in the short term, as we did with Rivian ( RIVN 0.00%↑) recently.
Doubling Down On A Crypto Play
The other trade is doubling down on this picks & shovels crypto play we placed a trade on last month.
Trade Alert: A Crypto Picks & Shovels Play
Letting The Trade Come To Us I actually placed today’s trade last month, but since it just filled today, and we’ve had a number of new subscribers join since then, I am posting this as a trade alert today. Here’s what we wrote about it last month: Waiting For The Right Setup
This trade is more aggressive and essentially a bet on its earnings release next week.
Details below.
Our Small Cap Trade
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