CVNA – Your Bullseye Pick of the Week - Bullseye Pick of the Week
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.