Trade Alert: China, Crypto, AI

Three bullish trades

Three Bullish Bets

1. QIFU Technologies ( QFIN 0.00%↑). We placed a bullish bet on this one last month and exited it for a 200% gain. In hindsight, I should have held onto half of my calls. It looks like this new government-goosed Chinese bull market may have more to run, and QFIN is still cheap on a valuation basis (valuation rating of 8 out of 10, via Chartmill). In foresight, I bought more today: I bought the $35 strike calls expiring on February 21st for $2.15. The max gain on 2 contracts is uncapped, the max loss is $430, and the break even is with QFIN at $37.15.

2. Tencent Music Entertainment Group (TCOM 0.00%↑). Another Chinese stock with solid fundamentals and an inexpensive valuation despite the recent run up. This one has an overall fundamental rating of 7 and a valuation rating of 7 via Chartmill. I bought the $12 strike calls expiring on March 21st, for $2.15. The max gain on 2 contracts is unlimited, the max loss is $430, and the break even is with TME at $14.15.

3. Bit Digital (BTBT 0.00%↑). This was one of our two lottery tickets last month. I have an interview with its CEO I’m going to publish later today, so I figured I’d add some more exposure to it ahead of time. I put in an order to buy the $3.50 strike calls expiring on May 16th, for $1.03. The max gain on 4 contracts is uncapped, the max loss is $412, and the break even is with BTBT at $4.53. This partially filled.

Exiting These Trades

I’m going to set GTC orders to exit half of these calls at 3x their purchase prices, and then I’ll lower those prices, if necessary, as we approach expiration. Of course, I’ll exit all of the calls before expiration, but I’m putting GTC orders on half of them so if we get a big spike in the near term, we’ll take some gains.