From my experience this is how big bullish market moves usually end in the short term, when junk begins to fly! Here’s what happened to the options I sent out on Monday:

And here’s how I traded it:

I took ½ of my position off after a 50% move so I am still in this trade! I wanted to let the rest ride because I know how crazy these meme names can get but unfortunately CVNA has started to come back down. Either way I traded my plan and made sure to lock on some gains on a great idea.

My Trade Details:

• CVNA Feb 24 2023 $15 Call near $3
• Stop: Close below $11.80
• Target 1: $16.50
• Target 2: $21.50

Here was my reasoning:

You must be asking yourself, “If it is such a trash company, why buy CVNA?”

My answer is that in the short-term, it just doesn’t matter how terrible the stock is.  If you zoom out and just look at this idea from a technical perspective (that is, just looking at the stock chart), it is a pretty amazing setup.

If you are a member of my “Bullseye Unlimited” program (and you better be!) you will remember that I picked this last week, when the stock was around $10.  Then it shot up to nearly $20 the very next day, and the options moved well over 400% following my alert.

Not to say that will happen again, but it proves that this is a powder-keg opportunity right now.

The short interest in this stock is off the charts.  I am sure the move last week both trapped a lot of recent shorts and had a lot of new ones added.

But here is the thing… even though CVNA pulled back to $14’s after touching $20, it hasn’t budged since.  I think shorts are in a big mess right now and if the “Apes” get their way, they will push this stock right back up soon.