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Breakout Multiplier

LOVE Calls Hit the Money

November 21, 2024

Today we held our Breakout Multiplier Weekly Strategy Session.

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...

Breakout Multiplier

Being a Home Run Hitter

November 14, 2024

This morning, we had the legendary turtle trader, Jerry Parker on the Morning Show. Watch the replay here.

He emphasized the importance of outliers in a system. The core idea is simple: let winners run and keep losers tight.

Outliers are the difference-maker in any sound trend following strategy.

At one point, Jerry likened his trading approach to “being a home run hitter.”

It’s the same thing we’re doing here with Breakout Multiplier. We’re shooting for outsized gains. When managed correctly, they take care of all the losers.

We really nailed a perfect entry last week with Square, and I think it’s setting up to be our next big hit.

Last Friday, we bought this...

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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