When the levee breaks….

Here where I live we had a deluge of heavy rains earlier today. No high winds, no tress blowing over, just rain and flash floods every where. The sewer pipes can only take so much “flow” before they overflow out into the streets. And the levee’s can be tested by fast rising waters, they can only take so much.

That’s how stocks are before they breakdown, they can rise until there’s nothing left to hold them from spilling over. CHWY had that today. I exited with my profits from my entry at the $20.00 mark. I’ve said it before we only need one reason to exit a stock, and that is to protect profits while we can and not take losses when we have to. It can go to “Da Moon” tomorrow and that is okay, I got mine, nexxtttttt…..

TSLA popped, it popped big closing up 6%. NVDA is still in la la land, where it goes no body knows. It did print a big Doji on the day. In Technical Analysis that is Japanese candlestick that offers a bullish reversal or turnaround. Time will tell. Banks, I’ve been a fan since Friday and SYF has been the play for me.

AMZN We have to talk about this. A few things, and this matters to stock investors as well as options traders. Those JUL 19, 2024 Calls, ( in options you only use the first 3 letters ) options buying jumped by 28% today. They now sit up over 135,000. Last night I shared that some of them were sold by short sellers not expecting price to reach $200.00. Those that did that play most likely did so before the recent breakout. And I would be highly surprised to learn that any of todays action was shorts piling in. It wouldn’t make sense with the price being so close. Maybe a few misled souls but the majority is most likely buying. You see one does not necessarily always need it to cross north of $200.00 before they can start making money. The text book version will tell you that, Strike price ( $200.00 ) plus the premium paid. ( The cost ) but often times those descriptions don’t take into acct when the buyer bought, the IV ranking at the time of purchase, or the Delta’s they are collecting. All of those matter.

Also American Style Option buyers are not obligated to hold until the EXP Date, in this case JUL 19, 2024. They can close their positions at any time. Only those in European Style have to hold.

When investingwithfaith.com offers it’s upcoming premium service it will host a wide array of stock investing educational articles as well as videos describing information like this.

Invest wisely, live charitably and be well

Brother Bill