Trade Alert: (3 x 2) +1

Seven trades on three top names and one short squeeze candidate.

Short Term Trades That Almost Worked

One thing that strikes me about the market action this week so far is that a few of our trades from last week that didn’t work would have if we’d used slightly further out expiration dates. For example, we had the right idea to bet against Nvidia ( NVDA 0.00%↑) during its recent rally, but we lost money on our puts that expired last Friday. Had those puts expired this Friday instead, we could have cashed them out yesterday for a nice gain. With that in mind, we’re going to try a few more short term, speculative trades today, on three of our top names from last night’s close.

Slightly Longer Term Earnings Trades

We’re also going to place trades going out past their next earnings releases. Each of these three top names beat their earnings estimates in February, but their shares are down significantly since then. And their all scheduled to release earnings again in late April or May. So, we’re going to bet that their share prices are at least slightly higher after they report then.

And One Short Squeeze Trade

Those six trades are the ones represented by the (3 x 2) in the title of this post. Our seventh trade is a short squeeze candidate. I found this one on a new subscription site I’m trying out, called Squeeze Finder. This was their most “squeezable” name that had options traded on it as of yesterday.

Maximum Potential Gains And Losses

The maximum upside on our short term trades is uncapped, but we’re aiming for gains of 100% to 200% with them. The maximum upside on our earnings trades is about 150%. I’m being somewhat conservative with these, looking at the options market’s expected movement for the stock after earnings, and placing trades that will max out if we get half the expected positive movement. The maximum upside on our squeeze trade is uncapped. That could do very well if it works. The maximum loss on all of these is 100%.

Details below.

Today’s First Pair Of Top Names Trades