When Expectations Are Already Low
Today’s Top Names trade is a beaten-down former meme stock. Its weak balance sheet and dilution history are well known, and its low share price isn’t the same thing as a cheap valuation. But the operating business has improved sharply, and the stock still made Monday’s Portfolio Armor Top Ten.
The technicals independently support a defined-risk position. The shares closed above their 50-day moving average, with a neutral RSI and Chartmill Technical and Setup Ratings of 7. The setup suggests expectations are already low, leaving room for an outsized move if operations continue to improve.
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Two Independent Idea Engines
Our second trade came from our “Really Time To Buy?” screen on Chartmill, which looks for companies with strong Piotroski F-Scores and constructive technical setups. This candidate combines a 10/10 Technical Rating and an 8/10 Setup Rating with profitable growth, a large cash balance and no debt.
The third came from our Multibaggers list. That’s the subset of our Market Watchers X list made up of analysts who have posted multiple recent 100%+ winners. This fast-growing digital-health company also has a 9/10 Technical Rating and a neutral RSI.
Wide Markets, Firm Limits
All three option packages have wide overnight markets. We priced each leg under Black-Scholes, Bjerksund-Stensland and a Cox-Ross-Rubinstein binomial model, then set every maximum debit at or below the most conservative model value. If the market won’t meet those limits, we won’t chase these trades.
Paid subscribers will find the names, complete structures, maximum entry prices and pre-set exit plans below.
Today’s Top Names Trade
Contrarian recovery / beaten-down former meme-stock theme.
RSI: 56; Chartmill Technical Rating: 7; Setup Rating: 7; Fundamental Rating: 2.
