Trade Findings and Adjustments 02-02-20

Trade Findings and Adjustments 02-02-20

Keve Bybee – keve@hurleyinvestments.com

GME – BRILLIANT!!! But… It doesn’t always just GO UP!!

Why?

1. Human nature: People get worried that it keeps going up, and take a profit and run.
2. What happens when people stop buying? The stock will lose momentum and the pressure to drive the price up peters out.
3. Hedge funds have other positions to liquidate and throw at GME.

What now? It’s a case of musical chairs to get out of the stock with a profit before you get stuck with a losing position.

So why the pull back in the market last week?

• Maybe had a bit to do with the MEME stocks making the market nervous.
• I think it profit taking at the end of a month on a stock market that has gotten overbought. Needs to pull back in order to head higher.

COST – Adding or starting Leap Calls Jan 22 380 Calls for about $24-25

FB –  Jan 22 $280 or $300 strike Calls or more time if you are ok with the swings and want more time.

JPM – Feb. 26^th 135 strike Covered Call trade for about $3.50-4.00 of credit. Trading at 133.61 tonight.