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!
Editor, Rude Awakening