Trade Ideas
Rubber Band
Oversold put credit spreads0 setups
When a big, liquid stock gets stretched to the downside and option premiums swell with fear, we sell a put spread below the market. The idea is to collect income while the rubber band snaps back, with a defined maximum risk and a short strike well under where the stock trades today.
Moonshot
LEAPS calls on accelerating growers1 setup
Long-dated, in-the-money calls on companies whose growth is speeding up, bought when options are on sale. A Moonshot gives stock-like upside for a fraction of the capital and more than a year for the story to play out.
| Ticker | Contract | Mid price | Delta | Breakeven | Expiry |
|---|---|---|---|---|---|
| MUMicron Technology | Jan 21, 2028 $750 call | $282.15 | 0.75 | $1,032.15 | Jan 21, 2028 (462 days) |
Gap & Nap
Gap up, then a tight sideways base2 setups
A big gap up on heavy volume tells you institutions just changed their minds about a stock. The best follow-through often comes after the stock takes a nap: a tight, sideways base that holds the gap while sellers dry up, before the next leg higher.
| Ticker | Gap date | Gap | Days basing | Range | vs gap-day close | Note |
|---|---|---|---|---|---|---|
| CCLCarnival Corporation | Sep 29 | +10.2% | 13 | 9.3% | +3.1% | Base 24.52–26.94 · 4.0% under the base high · invalid below 24.00 |
| MSFTMicrosoft | Jul 30 | +12.1% | 55 | 11.3% | +17.3% | Base 491.22–551.15 · 4.2% under the base high · invalid below 432.44 · volume drying up · earnings Oct 29 |
Still napping (too early to call): PBR +10.8% gap Oct 5, 9 days, range 9.6%.