We’ve seen a nice bounce in the market this week, with the QQQ’s up over 10% off the lows made in June. I’ve been all over this bounce trade from last week, and you can read about that in detail HERE. Here was the result:
But I didn’t just trade the QQQ’s. Understanding that a market bounce was likely, my best Idea for this week was to trade a high Beta Market stock that I thought could move even more than the market. That stock was ARKK, and here’s what the options did:
And Here’s how I traded it:
29% in 3 days ain’t bad!
Every Monday morning, I send out my best trade idea for the week before the market opens to Bullseye subscribers. After analyzing the market the week before and running through charts over the weekend, this is my favorite and most primo setup for the week.
I believe that if you can manage one single trade a week and do it well, you can filter out all of the noise happening with the market overall.
There’s a lot of thought that goes into the Bullseye trade of the week. I’m looking to find good trade ideas that are outliers in the market.
Here was my reasoning for the Bullseye Pick, which was sent to subscribers on Monday July 18, 2022
When it comes to this week’s idea I am going with ARKK.
ARKK – ARK Innovation ETF
If you know me at all, you know I absolutely detest this stock (ETF).
It is made up of the worst companies out there, in my opinion.
However, when I think the market is going to sustain a rally for a while, I think ARKK will outperform the QQQ so that is where I want to place my bet.
If I am wrong, I will cut my losses if ARKK closes under $41.50. On the upside, I think this has enough room to run to almost $50 soon.
I am taking contracts that are 3 weeks out, so I may decide to hold these longer than a week if that is what it takes for one of my targets to get hit.
Best of luck to you this week!
My Trade Details:
- ARKK Aug 5 2022 45 Call near $2.40
- Stop : $41.50
- Target : $50
Here’s what the Options did this week:
Here’s How I traded it:
Image and article originally from ragingbull.com. Read the original article here.