Stock Watchlist 8/16 - ASTR VSCO ABCL HOOD AAPL FSR RIOT NVAX UPST CACC SNOW charts + alert list
It's been a fun past few weeks. I hope you've nailed a few of the bigger trades MRNA UPST HOOD etc. A brief rant before the list - IF a stock pops mid-day on-air, AVOID it. NET comes to mind from Thursday. Chasing mid-day finance website 'alerts' or chat room pumps can end you quickly if you're trading options especially when the move is not a true technical breakout or backed by company news worth the price action move. If they would have announced a partnership or new product then maybe it could have been a sustainable pop that setup a continuation play later in the day. But that wasn't the case. At the very least be ready to turn your call chase into a strangle so the puts pay when it fades right back as NET did. Otherwise, avoid it and find easier clearly identifiable setups. Don't get me wrong, I like NET as a company, but I trade specific setups that give me the best advantage to make the most money in the shortest time frame while minimizing risk. Doing a nightly watchlist with which strikes you will target if it clears the range is a must. So here we go:
Astra Space (ASTR) - I'm going to target September 12.50 calls for a day-trade which could turn into a swing trade IF a breakout over 11.80 sticks and it closes near highs of the day. Willing to get short/put biased if it fails and falls below the trend line for a fade back towards recent lows. Trade what it gives us. This is a prime example of a continuation setup after the initial pop earlier this month.
As for the company, Astra is going to be a name to know this decade. They were the fastest space startup to reach space and have contracts with Space Force to start launches later this month. While Virgin Galatic, Blue Origin, and SpaceX are going to be known for tourists, this one wants to be known for their contract work to get new space equipment where it's supposed to go in a timely fashion. Everything about this company seems straight to the point including their simplistic website. https://astra.com/
Victoria's Secret (VSCO) - This well-known brand that spun off a few weeks ago from the old L Brands has been on a steep uptrend. Consolidating around 75 and feels like it could be the next stock to pull a parabolic move that most don't expect. JPM & Evercore both initiated with $100 targets last week. PLEASE NOTE: Earnings will be posted Wednesday after close. Thus, be smart along the way if we get the breakout over 75 for a nice trade be sure to lock in some gains. Gambling on earnings is not ideal if you're in account building stage. Meaning if you don't have a padding to be able to handle a gap down loss and still keep trading then NEVER hold one sided options through earnings. Even strangles & straddles can blow you up if the stock doesn't move. I'm long 80-95 calls that expire on Friday. Depending on how it trades going into Wednesday I'll probably take gains and revisit after earnings Thursday morning. If it gets stuck at 75 I'll take some puts and risk the earnings gamble. 20 point range potential if it gets going based on recent range. Just be smart.
AbCellera Biologics (ABCL)- interesting action on Friday worth noting for a follow-through play if clears 19 OR if it opens weak and gets green for another leg up in either scenario. if it gaps into the 20's I'll only watch for intra-day dips or continuation setups on the 5-minute chart. They have 138 programs in progress now. Now let's see if we can hit a momentum trade. Otherwise, avoid or be willing to fade it back.
Robinhood (HOOD) - potential trend reverse and squeeze. Pretty hated name to start with, which helped with the initial post IPO squeeze. Now let's see if 50 can be new support and get a push back towards 65-70 range near-term. I'm long calls. Recent lows as risk guide or flip short/puts.
Apple (AAPL) - Needs to clear 150. I'm long 152.50 calls with 2 weeks to go. Even a push towards 155 and it'll be a doubler for me. January calls also relatively cheap if it gets going in the next few weeks.
Fisker (FSR) - I primarily trade long, but if an easy short setup presents itself I won't say no. If it loses 14 it could be a swing short down towards 10-12 range in the coming days. Longs got bagged last week, could get ugly. IF IF 14 holds it could be worth 14p/15c strangle as calls would pay well on a snap-back bounce towards 17-20 range. Again, play what they give us.
RIOT Blockchain (RIOT) big potential if clears 40. 26% short float and cryptos are trying to get bullish again this weekend. Bitcoin, Doge have both been building bullish reversals over the past 2 weeks. Other crypto stocks to watch BTBT CAN MSTR etc
Novavax (NVAX) - A continuation over 260 could be quite powerful.
Upstart (UPST) - Awesome post-earnings breakout. Someone nailed those 150 calls leading up to it as I discussed here. I'm looking to find an intra-day short setup to day-trade some weekly $190 puts. Buying calls up here would be more of a hedge than the real play. I don't see volatility sticking around forever, so enjoy the price swings while you can. But sometimes the hedge pays off as seen with JOBY last week.
Credit Acceptance (CACC) - I don't know jack about this company other than its up post-earnings. The chart has one of my favorite setups in progress. 21% short float as the chart is trying to breakout into a parabolic move higher. I'm talking 100+ point move soon. Of course, not a guarantee, but the potential is there based on the trend speed up and short float.
Snowflake (SNOW) - Acting like it wants to speed up into the 300s soon. I'm long calls here. Will also day-trade weeklies to pay for the swing trade it if the action does indeed start to speed up.
Some others I have alerts for this week for initial breakout or continuation:
RKT > 19.55 (I'm long calls)
U > 129 (I'm long calls)
DDOG > 137.50 (I'm long calls)
PLTR > 25
DASH > 195
EBAY > 74.15
ABNB > 155
TSLA > 728
FULC > 25
CAR > 94.50
AGFY > 30
More setups and alert triggers on Twitter! Chart requests welcome.
Happy Trading!