Trade Findings and Adjustments 02-02-20
Keve Bybee – keve@hurleyinvestments.com
GME – BRILLIANT!!! But… It doesn’t always just GO UP!!
Why?
- Human nature: People get worried that it keeps going up, and take a profit and run.
- What happens when people stop buying? The stock will lose momentum and the pressure to drive the price up peters out.
- 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. 26th 135 strike Covered Call trade for about $3.50-4.00 of credit. Trading at 133.61 tonight.
