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Breakout Multiplier

Multibaggers Everywhere

November 11, 2024

We're in the midst of a fierce leg higher for risk assets.

The S&P 500 is making new all-time highs, speculative stocks are on fire, small caps are ripping, and Bitcoin is well on its way to $100k.

As a result, many of our recent positions are multi-baggers.

Let’s review a few of them.

Last week, we put on some trades in Bitcoin miners as we believed they were ideal vehicles to ride the post-election rally in crypto.

As part of this strategy, we picked up $MARA 12/20 $25 calls and $CLSK 11/29 $15 calls. We paid about $1.15 for each.

We were already long MARA and RIOT calls with an 11/22 expiration. There is a juicy short interest in all of these names.

We liked MARA so much that we wanted to double down on it and...

Breakout Multiplier

Sell the Double, Buy the Block

November 8, 2024
This post was originally for paid members only. It has since been unlocked for informational purposes and does not constitute financial advice. 

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The stock market is embarking on a fresh leg higher, supported by the broadest participation we've seen this cycle.

With speculative growth stocks on fire, our $ARKK 11/15 $52 calls are doubling today. 

We want to take half off the table here and redeploy that capital into a new position. I’m selling them for $1.80.

The initial earnings reaction for $SQ is catching our attention today. The stock plunged lower but has been clawing back losses all morning.

Just look at the wick forming on todays daily candle:

 

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Breakout Multiplier

Peloton is a 12-Bagger

October 31, 2024

Here at Breakout Multiplier, we're all about booking big gains—and our Peloton $PTON play just hit it out of the park.

A month ago, we scooped up the 11/15 $7 calls for a cool $0.16.

By October 18th, we'd already sold half for a triple. This set us up to let the rest ride into earnings, while already securing a profit on the full position.

In other words, if the remaining calls went to zero (which they did not), we still made money on this trade.

Today, Peloton's ripping, up over 30% on the heels of earnings, and our calls are going through the roof, trading as high as $2.00 in today’s session.

That’s right—a 12-bagger, a whopping 1,000%+ return!

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Breakout Multiplier

Banking on a Big Move in BAC

October 30, 2024

With the election right around the corner, we think banks are offering an extra spicy setup.

Bank of America $BAC is the perfect vehicle to express a bullish thesis on this theme.

The primary trend has recently shifted higher, and price has been consolidating in a triangle since it peaked back in July.

 

Our volatility squeeze indicator (weekly) has crossed higher off an extreme low, suggesting some big momentum could be coming.

If we get a valid resolution from this multi-week coil, the follow-through move should earn us a quick double.

And then we’ll have the election reaction which will dictate whether we book a big gain on the remaining position.

That is why we are only going out to December with these calls. It gives us about three weeks to get the move we're looking for, and allows the election to be the catalyst for it before the theta decay window kicks in.

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Breakout Multiplier

Securing Profits in $SOUN and $RIOT

October 29, 2024

The Breakout Multiplier strategy is all about persistence and risk management.

Sometimes, the trades we put on take a few tries to materialize, with some losses along the way. But when you hit that one winning trade, it makes up for everything—often covering those earlier losses and more. That's the key to this approach.

Our recent persistence with $SOUN has paid off in a big way.

We put some calls on a few months back and they went to zero.

We liked the setup even more at this point, so we simply put the trade on again, this time, buying ourselves even more time.

After surging 18% yesterday, our 1/17/25 $7 calls are at a double.

 

It is time to secure some profits. We want to close half the calls and let the rest ride risk-free....

Breakout Multiplier

LOVing this Base in Lovesac

October 28, 2024

Speculative tech is on fire, and as we enter the best three-month period for equities, we’re all-in on this theme. 

Following a similar path as recent winners like Peloton and Robinhood, Lovesac Co $LOVE is shaping up nicely as it breaks out of a big base.

As you can see, the stock is on the verge of completing a classic bearish-to-bullish reversal pattern.

Momentum is building, and with volatility crushed at historic lows, the setup looks primed for a pop. 

We want to get long and bet on this being the start of a new uptrend.

 

Add a juicy 28% short interest and daunting 14x days-to-cover to the mix, and we like this one even more. 

This has all the makings for a massive potential short squeeze.

There was...