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The Portfolio Armor Substack
Trade Alert: Top Names

Trade Alert: Top Names

Taking advantage of today's market pullback.

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Portfolio Armor
Sep 06, 2024
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The Portfolio Armor Substack
The Portfolio Armor Substack
Trade Alert: Top Names
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A dramatic and metaphorical illustration of the investing concept 'Buy when there's blood in the streets'. The scene depicts a busy urban street in a financial district, with tall skyscrapers and bustling people. The atmosphere is tense and chaotic, with a red hue symbolizing 'blood in the streets'. Investors are portrayed making decisive moves, calmly walking against the flow of anxious people. The image should capture a sense of opportunity amidst turmoil, with subtle details like stock charts, newspapers with alarming headlines, and contrasting elements of fear and determination.

Taking Advantage Of The Market Pullback

Three open bullish options trades of mine filled today with the market pullback. The first of them was a biotech stock we placed an order on last week.

Trade Alert: Biotech

Portfolio Armor
·
August 30, 2024
Trade Alert: Biotech

Keeping An Eye Out For Market Rotation

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The other two trades I placed orders on before that, but, as it happens, both stocks were on our top ten names list last night. The second one was a small cap I wrote about earlier last month:

Trade Alert: Top Names

Portfolio Armor
·
August 13, 2024
Trade Alert: Top Names

Taking Advantage Of Today’s Drop

Read full story

The third stock I haven’t written about before, so I’ll tell you a bit about it here. This was a top name of ours initially back in July, and I bought the underlying shares then as part of our core strategy. It was a top name again last night, as I mentioned above.

Uniquely for one of our top names, it’s also inexpensive on a valuation basis. Chartmill’s overall valuation rating takes into account multiple metrics, including Price/Earnings, Price/Free Cashflow, Price/Book, Price/Forward Earnings, etc. This stock gets an overall valuation rating of 8 (out of 10) from them. A few more of its Chartmill ratings:

  • Valuation: 8

  • Profitability: 9

  • Growth: 6

  • Technical: 10 (Might be slightly lower after today’s drop)

When this name reported earnings in July, it beat on top and bottom lines. It’s scheduled to report earnings again in late October. The soonest options expiration after that is in mid-November, and the options market currently predicts a movement of about 14% in either direction by then. Our trade today is a bet that the stock gains about 11% by then.

If we’re right, we’ll make about 170% on this one (we’d make closer to 200% if we’re still right at expiration, but we’ll probably get out of this one in October). If we’re wrong, our max loss will be 100%.

Details below.

Today’s New Bullish Trade

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