When discussing the deck for today's call, Alfonso and I agreed that the best chart had to be Lovesac $LOVE.
Just look how orderly this rounding bottom breakout is playing out.
We scooped up the 12/20 $35 calls, hoping they’d be in-the-money by the time the theta decay window set in.
With the stock up 7% today, that’s exactly what happened. And it came just in the nick of time, as today marks 29 days until the expiration of our calls.
Momentum is firing up, with the daily RSI-14 getting overbought for the first time since the summer.
LOVE is also sporting a momentum buy signal on the daily, weekly, and monthly charts. Talk about trend alignment across multiple timeframes!
Everything's lining up perfectly for this trade as originally planned.
Just imagine LOVE makes a run toward $45 in the next 30 days, which would be a roughly 25% move higher. Under that scenario, these calls should easily be worth 10X, depending on how fast it happens.
This one really reminds me of the recent setup in SQ, which has turned into a huge winner for us. I think LOVE might be the next big hit for Breakout Multiplier.
