Options up over 111% in just 2 days!

CVNA Options 7/15/24 near $3.60 – 2 days later $7.62 = 111%

My Trade Plan Details:

• CVNA July 26 $145 calls near $3.60
  
• Stop: Close CVNA below $127
• Target 1: $145
• Target 2: $160

My Reasoning:

The market continues to rip higher, but I have to say that this has been one of the more difficult trading environments I have seen in a long time.

The volatile swings in momentum stocks have been very tough to nail down.  There are no chart patterns to capture what has been happening.

Personally, I am sizing down on my risk for each trade at this time.  

It is crucial to use limit orders to take advantage of the price spikes to the upside, which sometimes only last a few minutes.

On the downside, I want to make sure I leave myself a bigger stop loss than normal and I’m willing to buy sharp drops in the price rather than get shaken out for losses.

While it is tougher than usual right now, I still think there are a ton of good looking trades out there.

Today, I am going back to an old favorite of mine.  I talked to you about this stock around a month ago when it was trading for $110.

Right now, it is around $136, and even though it has rallied 20% this month, I still think this stock can go a lot higher from here.

My Bullseye pick that I want to buy this week is (CVNA) calls.

My plan is to get started near the open today and buy both stock and options, hopefully near my target entry price, which I list below.

f this trade doesn’t work out for me, I will look at a closing price under $127 as my stop loss, which has been a key resistance/support level over the last couple of weeks.

If things work out as I hope, I would like to scale out of most of my position for a 30-50% gain.  

On Friday last week, CVNA hit a new 52-week high just over $140, before pulling back a bit. I think the stock will power through that soon and hit at least $145 as target #1 for me.

If $145 clears, I think it is possible to see a spike to $160, which is where I have target #2.

Keep in mind that earnings are on July 31, so I am going with options that are only two weeks away from expiration.