
DJT – My Bullseye Pick of the Week - Bullseye Pick of the Week
My Bullseye pick that I want to buy this week is (DJT).
My Trade Plan Details:
- DJT Jan 24 $38 calls near $2.00
- Stop: Closes DJT below $33
- Target 1: $38
- Target 2: $44
DJT options 01/24/25 near $2 – 1 days later $7.71 = 285%
My Reasoning:
This week, I am expecting a very volatile market. While we are currently trading in a downtrend, I am expecting some sharp reversals along the way to scare out short sellers and try to get bullish buyers excited.
Be very careful starting new long positions in a market downtrend – that is fighting against the tide and can be very tricky.
While you might think it sounds obvious to short the market from here, I think the “meat” of the move has already happened. I was early to cash in on winners for my IWM short positions last week, and at this point I think it is a little late to the party to start new shorts.
My best bet would be to sit on the sidelines until the conditions improve, or be very selective in trades that have the potential to work no matter what.
I think that one of those trades might be DJT right now.
With the inauguration coming next week, I am expecting buyers to re-emerge in this stock. You never know how high it will go if things get crazy, to the upside but that is not my main concern.
I am looking for a stock that I don’t think will collapse if the markets continue lower. Because of the inauguration, I think we will see a lot of optimistic buyers for this stock over the course of the week, and I think the downside will be limited.