New Trades and a Roll

Speculative themes have been the best trades on the tape for the past six months. 

We’ve been tracking American eVTOL stocks for a few months, noting the aggressive primary trend reversals in many of the names in the space. 

With China shaping up, one stock we’ve kept on our radar is EHang $EH. 

One of our scans picked up an unusual volume splash today in the March 21 $21 strike calls. And we love the chart, so we’re in:

With volatility compressed and with volume and momentum coming into EH in a big way, we want to make the bet this base resolves higher. 

A trade like EH has the potential to become a multibagger. 

Not only would a quick pop get us a double, but it would also complete this multi-year basing pattern which could kick off a massive up leg. 

We’re buying the $EH 3/21 $21 calls for approximately $0.80 - $0.85 per contract.

Last but not least, with our $ASTS 2/21 $30 calls near the price we paid and with expiration two weeks away, I’m rolling this position.

I'm taking the money and buying the $3/21 $40 calls for approximately $1.20.

This one looks like it is going as we speak. This week's candle is poised to engulf the prior 14 weeks of price action. 

It’s as bullish as it gets. So let’s buy ourselves some more time and bet on a big reaction rally over the coming weeks.