DXCM – Your Bullseye Pick of the Week

My Trade Plan Details:

• DXCM Aug 18 2023 $125 call near $1.20
• Stop: Close under $115
  
• Target 1: $125
  
• Target 2: $130

[Trade plan did not work out. Max potential loss: -100%]

CAVA – Your Bullseye Pick of the Week

My Trade Plan Details:

• CAVA Aug 18 2023 $55 call near $3.20
• Stop: Close under $45
  
• Target 1: $55
  
• Target 2: $60

[Max potential win: 70%]

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!

CVNA – Your Bullseye Pick of the Week

My Trade Plan Details:

• CVNA July 7 2023 $30 call near $1.60
• Stop: Close below $21
  
• Target 1: $30
  
• Target 2: $34

[Max potential win: 50%]

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.