NUGT – Your Bullseye Pick of the Week - Bullseye Pick of the Week

My Trade Details:

  • NUGT June 2 2023 $46 call near $1.80
  • Stop: Close below $42
  • Target 1: $50
  • Target 2: $54

My Reasoning:

We have a very light week of earnings and economic events this week.  The only big item looming out there right now is the debt ceiling, as I mentioned.  

Also, the market continues to price in a rate cut in the next few months, but the Fed keeps making it clear that we will not see any cuts this year.  I wonder who it right?

Regardless, all of this bodes well for gold again.  When I want to bet on gold, I go with the miners (NUGT is a 2x leveraged bet on gold mining stocks)

NUGT has had a nice pullback from near $52 a couple of weeks ago, to $43 last week.  I think that pullback is the opportunity a lot of new investors were waiting for.  If it continues to build momentum, then I think we will see NUGT blast off and possibly take out the previous high of $52.

I am putting my upside targets at $50 and $54 if this trade works as I think it will 

If I am wrong, I am setting a tight stop loss if NUGT closes below $42, which is the recent low in the trend.