10-day Trade for 40%+ Returns?

Welcome back to the Rude Awakening for Monday, March 22, 2021.

We have an interesting setup for you to look at today, but first…

Looking at the markets this morning, it is noteworthy that ALL of our technical indicators (that means 12 indicators and two lengths of moving averages) are implying a VERY bearish stance in the marketplace.

But, the major indices are fighting back this morning, especially the Nasdaq.

The Nasdaq is up over 100 points starting the trading day.

So we’ll see how this juxtaposition plays out today.

And now, for today’s setup…

New Approach for Trading on a Fitness Giant

For this approach, we’ll use Lululemon Athletica Inc. (NASDAQ: LULU).

LULU has an interesting scenario coming up quickly. They’re reporting earnings after the bell on March 30.

If you look at the April 1 options, you’ll see a vertical brown bar, which is the expected trading range of this stock over the next ten days.

The numbers right now from the options pricing give us a price of about an 8% implied move. And, in regards to volatility, we are seeing a 60% implied move on the options.

So, today, we’ll show you how to set up a “volrush trade.”

Our risk on this trade would be $500, for a profit potential anywhere from $1,000 to $1,500 — in just 10 days.

Have a great trading day, folks.

We’ll see you back here tomorrow morning!


Scott Stewart

Scott Stewart
Editor, Rude Awakening

You May Also Be Interested In:

The Rise Of Socialism

Prophets of doom have always taken risks in terms of ridicule and humiliation. If you stand on a street corner holding up a sign that reads "The End Is Near," passersby will laugh and heckle. People will say you're like Chicken Little, running around telling people the sky is falling. Yet after an economic crisis like one we're experiencing now, people ask, "Why didn't someone warn us?" or "What's the government doing to save us?"

Scott Stewart

Scott Stewart has been trading for decades. He has acted as an analyst and educator on the stock market for just as long. As your Rich Dad's Weekly Cash Flow analyst, Scott works tirelessly to ensure you know everything you need to do when entering into new positions, and adjusting trades as you go along....

View More By Scott Stewart