Trade Alert: Top Names

We made a 150% gain with this strategy on Tuesday. Let's try it again.

Trying This Approach Again

In our trade alert on Monday, we placed two bullish options bets on one of our top ten names from Friday, Spotify (SPOT 0.00%↑). One of those two trades filled, a short term one, and we exited it on Tuesday for a 150% gain (one of our subscribers did even better, exiting for about a 400% gain today).

Today, we’re trying the same approach: two bullish trades on one of our top ten names from Tuesday night, one short term, and one an earnings trade going a bit further out.

Today’s Stock

Today’s stock is one I really like, for three reasons:

1. It belongs to one of those rare companies whose brand and user experience has given it a real moat.

2. I made a profit of over 1,000% buying calls on it before the election last fall.

3. Its share price has pulled back to somewhat close to where it was trading before the election.

I was thinking of placing a trade on this stock on Monday, but I wanted an objective reason to bet on it then, beyond my liking the stock. Now that it has appeared in our top ten (at #2), I have it.

The max gain on the short term trade is uncapped; the max gain on the earnings trade is about 200%; and the max loss in both cases is 100%.

Details below.

Today’s Short Term Top Names Trade