Update on Our $GOOGL Trade and Another Stock I Added
By continuing to read, you agree to the disclaimer at www.aditdayal.wix.com/disclaimer.
What a day for the markets! Continuing upwards from our bottom call at 3580 on Weekend Wall Street.
Yesterday I sent out an email saying one of the best ways to play this market continuation would be through GOOGL 0.00%↑ call options:
If you didn’t receive this email, you’re not yet a paid member and you can subscribe here for ~$1 per day:
this was taken from yesterdays article:
Today those GOOGL 0.00%↑ call options are up 120% in one day!
I’m a big believer in quality over quantity and sizing down when the market is weak, but right now is when the market is hot.
When we get these violent reversals in the market, I’m looking for stocks that had rising short interest (aka the shorts kept adding, and now that the market is sending, they’re stuck) and today I have a trade for us.
NKLA 0.00%↑ is a stock with a great chart, options flow, and rising short interest.
In fact, the chart broke out of this downtrend today and has an extremely oversold RSI meaning we have a lot of room to the upside as well and the MACD is about to cross upwards.
This also has that rising short interest that I was talking about, as shorts kept adding now that 30% of the float is short sold and if this runs they need to cover. Remember, margin calls are usually in pre market so this may see a move tomorrow morning.
Lastly, and most interestingly, is the options flow here. Someone bought 80,000 OTM call options on NKLA 0.00%↑ for a total of $1.7M and small other adds throughout the day. In the options flow data I get straight from the exchange, we can see that some trader hedge fund also sold 90,000 puts which is huge and that is bullish because they want those to expire worthless.
That is my recap and short squeeze idea I had for you guys today. See you all tomorrow!
-Adit Dayal