My Trade Plan Details:

• LLY Sept 15, 2023 $565 call near $5.50
• Stop: Close under $545
• Target 1: $575
• Target 2: $590

BONUS Call Spread Idea:

LLY Sept 15 BUY $555 call & SELL $575 call for $7.00 net debit.

My Reasoning:

While I do think the tech sector is going to stage a strong recovery, at least for a few days, I am going with one of the strongest stocks in the entire market right now.  

If you haven’t been following this story, you might think it is some “AI-powered tech stock” if you simply looked at the chart.  But no, it is a “boring” old pharma stock that just happens to be one of the few companies managing fantastic growth in that sector right now.

My Bullseye pick this week is Eli Lilly (LLY).

LLY is a very extended stock, but it hasn’t shown any signs of letting up yet.  I think it might just keep powering higher from here if the markets hold up.

My plan is to start a position today, hopefully on a slight pullback for the stock, with a half-sized position. I want to leave room for an addition if the stock has a slight pullback this week, but stays above my stop-loss price.

If things don’t go my way, I plan to stop out of this trade if LLY closes under $545, which is the recent support level from the last week or so.

If it breaks out higher, I think we could see a meaningful move up to around $575 as my first target and even $590 after that.

It is going to be a fun week of trading…I hope you are ready for it!

My Trade Plan Details:

• QQQ Sept 1, 2023 $365 call near $3.80
• Stop: Close under $356
• Target 1: $365
• Target 2: $370

BONUS Call Spread Idea:

QQQ Sept 8 sell $360 call & buy $370 call for $4.50 net debit.

My Reasoning:

Instead of going after any individual stock, I am going to go after the tech index, and buy QQQ calls as my Bullseye pick this week.

My plan for QQQ this week is to start with a half-sized position near the market open.  I would then like to add to this if QQQ gets back to $358 level.

Remember, we have a couple of significant events this week.  The first is NVDA earnings on Wednesday evening.  I really want to be out of at least half of my trade prior to that earnings announcement.

The other is Powell talking in Jackson Hole on Friday this week.  I expect him to try and calm the bond markets, which should also benefit the stock market.

I really think we have a great 3-day window on QQQ before NVDA on Wednesday this week, so I want to make the most of it.

If I am wrong on this trade, I will stop out if QQQ looks to close under $356 level.  That is a very tight stop, but I do not want to see the lows from last week get taken out.  If that happens, I will walk away with a small loss.

On the upside, I think we could see $365 in short order followed by $370, which is the upper end of the Keltner channel on an hourly basis.

It is going to be a fun week of trading…I hope you are ready for it!

My Trade Plan Details:

• ERX Aug 11 2023 $60 call near $1.80
• Stop: Close under $54
• Target 1: $64
• Target 2: $68

My Reasoning:

For this week, I am very hesitant to want to buy tech stocks into earnings.  We just saw NFLX and TSLA get clobbered for not hitting expectations, and this week we are going to see GOOGL, MSFT, META and so many others report.

As I have been saying in my live sessions over the last week, the market is priced for perfection right now.  Missing the mark on earnings, even a little, is going to cause stocks to get smacked.

So, I still think tech stocks are going to march higher. It sounds like a good idea for me to sit on the sidelines there right now and wait to see how the earnings reports are digested.

What I am noticing is that we are starting to see more “sector rotation” happening (I’ll talk in more detail about this during the live session today) into sectors like utilities, energy, transportation – you name it.

Biotechs are still a laggard, and I don’t know why exactly, but that sector can’t seem to sustain a rally.

All that said, I am looking to get into energy stocks this week.  There are several earnings reports coming soon in that sector as well, so I am going to play the ETF, which is a single stock that owns all of the big energy firms.

This week’s Bullseye idea is to buy calls on ERX.  

My Trade Plan Details:

• COIN July 28 2023 $100 put near $5
• Stop: Close above $112
• Target 1: $92
• Target 2: $85

My Reasoning:

I also don’t see a lot of great short set ups right now, in general.

There is one sector that really has my attention at the moment, though, and that is crypto.

Many of the big crypto stocks have made a 100% move in the last few weeks, even though the gains for crypto itself have been much lower.

I do not think this “pop” is going to last, and we are going to see a lot of declines soon.

My top target to bet against this week is Coinbase (COIN), and I am looking to buy puts on it this week in hopes to profit from a decline.

My plan for COIN is to wait and look for a little rally today, after what looks like opening weakness, and get started on the put option contracts. 

If I am wrong, I think we will see COIN close above $112, which was near the recent top.  That could lead to a further short-squeeze, so I would exit my trade there for a loss.

If I am right, I think we will quickly see $100 taken out and then a drop to the low $90 range, which is where I would like to lock in profit target #1.  

After that, I think we could see COIN trade all the way to $85, for target #2.

Stock up 5%

My Trade Plan Details:

• BA July 28 2023 $220 call near $3
• Stop: Close below $202
• Target 1: $219
• Target 2: $224

My Reasoning:

My plan for BA is to look for a little dip today and get started on the option contracts, but only for a half-sized position.

I want to save some room to add more to this if the stock dips, and then recovers later in the week.  A recovery will be when it begins to trade back above the mid-point of the Keltner channel.  

I talk about this every week, so if this is unfamiliar to you, please make sure you attend the live session today.

If I am wrong, I will stop out of this trade if BA closes under $202, which would be below the recent support level.

If it goes my way, I am looking to sell just under $220 for a profit, and possibly even $224 for my upside target.

Stock up 14%

My Trade Plan Details:

• DASH July 21 2023 $78 call near $1.80
• Stop: Close below $70
• Target 1: $80
• Target 2: $84

My Reasoning:

This week, I am targeting a stock that is not on the radar of a lot of traders right now, but it is consistently making new 52-week highs as well.

It isn’t an “AI stock,” so you aren’t hearing a lot about them in the news, but they are executing very well on its business model, and funds are slowly accumulating shares on every dip.

The chart pattern looks almost like what we are seeing for SPOT – non-stop bullish accumulation nearly all year long.

This week’s top idea is – DoorDash (DASH)

My plan for DASH this week is to make an initial purchase on a half-sized position today, if I can get an entry near my desired level.

I then want to save room to add to this at a key support level near $73, if it happens to dip in the next few days.

If it continues to fall from there, and the stock closes under $70, then I will stop out for a loss.

My goals on the upside will be $80 and then $84, if this trade works out in my favor.

Stock up 5%

My Trade Plan Details:

• SPOT July 7 2023 $160 call near $2.60
• Stop: Close below $152
• Target 1: $164
• Target 2: $168

My Reasoning:

This stock once again made it onto my “top 5” for the week, and as I dug deeper, I can see that nothing has changed sincethe last time.  The stock is stronger, and a little higher priced, but still in a massive bull trend higher.

This week’s top idea is, once again – Spotify (SPOT)

My plan for SPOT is to make two purchases this week. I want to get started on a half-sized position today, somewhere near my target entry price.

It is important to see if the stock can break out of the existing channel. A closing price above $159 would really get me excited.

I also want to add to this later in the week.  I’ll let you know what my plans are as the week progresses.

If this trade doesn’t work out, I will stop out if SPOT closes under $152, which has been a crucial support level in the recent upward move.

If things work out my way, I plan to take profits around $164 & $168 as my upside targets.

Note that I am going with a shorter-dated contract this week, so this trade will be a little more volatile for me – either in a good (or bad ) way!

Stock up 3%

My Trade Details:

• BA June 30 2023 $220 call near $4.50
• Stop: Close below $210
• Target 1: $225
• Target 2: $234

My Reasoning:

For my top idea this week, I am going with the leading supplier of jets to airlines across the world, Boeing (BA). 

BA has been in an uptrend recently as well, but I still think it is in the early stages (barring a market pullback, of course).

If you go back to October of last year, BA made a massive run into the new year, hitting $220.  Since then, it has basically gone nowhere.  The stock has traded in a boring channel for several months, but with the strength in the travel industry, we are seeing a rally lately, and I think it could carry BA much higher.

My plan for BA this week is to buy options in 2 pieces:  I want to buy half sometime today, and I want to save half of my position size to buy more if BA hits $214.

If I am wrong on this trade, my stop loss will be a closing price under $210 for BA.

On the upside, if I am right, I plan to sell near $225 and possibly even $234 as my profit targets.

Stock up 10%

My Trade Details:

• TGT June 23 2023 $135 call near $2.50
• Stop: Close below $125
• Target 1: $140
• Target 2: $144

My Reasoning:

So, most of us know the story here with TGT recently. They have been selling clothes that are offensive to one demographic (a major one!) and there have been boycotts.  That, plus a weak earnings report, dragged the stock around 20% lower over the last couple of weeks.

Right now, I see this as a prime opportunity for a bounce. I don’t think people are going to stay out of TGT stores very long and this is a pretty extreme reaction we have seen for the stock.  

I think we will see a bounce up near the $140 range, if I am right, which was a previous support level.

On the downside, I am looking to cut this for a loss if TGT closes under the recent low of $125.

This will probably not be a fast-moving trade, but I do think we will see a move higher from here over the coming week.

I also think the market is due for a pullback, and I think this is a safer trade to be in compared to tech stocks right now.

My Trade Details:

• BILL June 16 2023 $105 call near $2.50
• Stop: Close below $92
• Target 1: $106
• Target 2: $114

My Reasoning:

BILL was a former “tech darling” stock back when everyone was in a good mood in 2021, as the stock traded around $350 for a while.  When the market sobered up in 2022, BILL traded all the way down to $75, right before the last earnings report.

Now, BILL has been flirting with $100, and I think we are going to see that level taken out very soon and will then provide a level of new support.

My plan is to get started with a half-sized position today, and look to add more to it on a dip this week.

If I am right, I think BILL will have a date with the 200-day moving average soon, which is around $107.  After that, I think $114 could be in play, based on the demand zone.

If I am wrong, then I want to set my stop with a closing price under $92, which is under the recent support level we have seen since the earnings blowout a few weeks ago.