A Trader's Education Podcast

Quick check in before we start trading on the other side of the latest from Jerome Powell and his latest on rates and the economy.

We looked at AMZN, SOFI, and DKNG to start the week and two of the three are doing what I expected. SOFI is being stubborn.

CPNG has been a holding in the Savvy Trader portfolio nearly all of 2023 but it fell off a cliff, dropping over 7% on Wednesday while markets moved higher.

The trade looks to be over for CPNG.

And with that, let’s take a look at the charts.

First up is AMZN, which got the swing higher.

A big move up blasted through the October 12th high of $134.48 and sets up for more gains.

Targeting $139.96 next and $145.86 above that, I like the momentum.

We could get a quick retest of the $134.48 support level, which would present a buying opportunity for a short-term trade.

I still like considering buying the $136 strike calls and selling the $142 strike, both expiring November 24th.

The net cost should be around $2 per call spread contract (buying one call strike and selling a higher strike). The max gain is the difference between the two strike prices, which is $6 or a triple.

On the flip side, CPNG disappointed in a big way on Wednesday.

Dropping over 7% and the only news was that 3G Capital exited their position in the company.

Earnings is coming up and perhaps that provides a catalyst.

Just a strange day for CPNG and no doubt frustrating.

Waiting to see how shares react over the next few days, if they can recover quickly back above $16.37 I could stay interested.

Selling covered calls against CPNG has been lucrative.

And then there is DraftKings.

DKNG is bouncing around the lower end of its channel, finding support at $26.41 ahead of earnings after market close Thursday.

I continue to like a bounce here and move towards $30.32 which is the top of the range.

I think there is a chance it can move even higher if guidance is strong for the remainder of the year and into 2024.

Similar to AMZN, I like to use call spreads but for DKNG I would be trading this week or next week’s options heading into earnings.

Usually, I like to take the win ahead of earnings, which I mentioned previously, but DKNG did not cooperate. The trade now really is to hold through earnings.

There may be a nice day trade if shares start at the bottom of the range. If DKNG gaps up, we won’t get the opportunity to jump in ahead of time.

That said, I like how it is positioned and am looking for a nice pop.

Thanks for tuning in! I appreciate your support of A Trader’s Education and hope you have a great day!

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

If you are like me, you enjoy trading in and around earnings season.

I find the best way to go about it is to trade ahead of earnings, taking most or all of the position off ahead of reporting, or post earnings which allows me to take in more information.

So, I thought I would share a few examples of to highlight both scenarios.

Before we get to the charts, I want to thank all of you for your support of A Trader’s Education. We just crossed 500 subscribers!

Writing about trading and investing is what I am passionate about, and I appreciate you providing me with that opportunity.

You’re a fantastic audience!

Alright, enough gushing and on to the charts.

First up is AMZN, which has a nice set up for a swing trade higher.

After a strong earnings report, AMZN has started the week by launching off of volume shelf at $129.

This got the price above the 50-day simple moving average (SMA), saw a bullish crossover for the MACD, and RSI jumped above 50.

All in a day’s work for AMZN.

I am looking for a break above the October 12th high of $134.48.

If AMZN pushes through, I like targeting a run to $142 fairly quickly.

On a move above $134.48 I like considering buying the $136 strike calls and selling the $142 strike, both expiring November 24th.

The net cost should be around $2 per call spread contract (buying one call strike and selling a higher strike). The max gain is the difference between the two strike prices, which is $6 or a triple.

Now let’s look at SOFI.

Another post earnings play but in the other direction.

After all of the positive news premarket, shares gapped up only to sell off nearly all day and close back below $7.

This was after reaching $7.88. Just a massive sell-off and I think it continues.

I’ve got a target of $6 for SOFI for November and like using slightly in-the-money puts expiring at month end.

If you like the opportunity to buy SOFI at $6 there could be an opportunity to do so at a slight discount by selling cash secured puts.

If you want to learn more about how I use CSPs, drop a comment or message me on X (Twitter) @tradernatehere and I’d be happy to go into detail.

Last up is a favorite, DKNG.

DraftKings has found support at the bottom of its range just days ahead of earnings.

The 150-day SMA is also showing up right at this $26.41 support level.

I like a bounce here and move towards and above $30.32 which is the top of the range, rounds 12% higher from here.

I think there is a chance it can move even higher if guidance is strong for the remainder of the year and into 2024.

Similar to AMZN, I like to use call spreads but for DKNG I would be trading this week or next week’s options heading into earnings Thursday, after the close.

I like to close out most if not all of my position ahead of earnings and take the win or loss before the big move.

Thanks for tuning in! I appreciate your support of A Trader’s Education and hope you have a great day!

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

We are back! After a week off and a ton of travel, the Trading Triangle is ready to hit the trading desk.

Big names with big impacts to the market continue to report earnings and this week is no different.

We take a close look at AMD and DKNG, both reporting this week, and provide our respective thoughts on key support levels and price targets.

The Trading Triangle brings the charts, trade ideas, and positivity heading into another trading week.

Join us for a full review as we dissect the market and a few of our favorite tickers.

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

Follow Shaun on Twitter @ShaunClarke_ and watch his videos on YouTube @ShaunTrades_ for more on NIO, TSLA, and others.

Follow Kaye on Twitter @InvestKaye and view his videos on YouTube under the same handle @InvestKaye for more on SOFI, GOOGL, AAPL, and more.

Have a great week of trading!

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

Let’s do quick run through of the positions in my Savvy Trader portfolio (all green Thursday, very nice) and what to expect from here.

This small, swing trading portfolio is up 16.85% for 2023.

You can subscribe and keep up with every trade for free here.

And now to each holding and a chart or two.

ET

Energy Transfer, ticker ET, touched $14.10 on Thursday.

This is a penny above its recent high and I like it to continue higher along with the energy sector in general.

There are few charts that look as nice as this one. I am considering adding to the position if it breaks above $14.10 meaningfully.

ET is not great for selling covered calls, which is part of the focus in the portfolio.

ET brings in about 1% for calls sold at the $14.50 strike and that is if you go out 43 days to the Dec 1st expiration date.

I prefer more premium, especially when I think shares are likely to move higher than the strike price.

CPNG

CPNG on the other hand can bring in a nice premium right now.

Selling covereed calls at the $18.50 strike, with the Nov 10th expiration date brings in about 3% with room for shares to still rise.

There is an additional 4.5% of runway from Thursday's close to the strike price.

I like this trade.

I also like CPNG to make a move higher after bouncing nicely off of the 20-day simple moving average (SMA).

AMD

AMD stalled out a bit but is holding the line at $102.

Targeting a push to the next volume shelf above at $107.50 it was good to see a positive Thursday when every other semiconductor name sold off, including NVDA.

Implied volatility is high for AMD, selling cash secured puts at the $100 strike with the Nov 10 expiration brings in $435 as of Thursday's close.

That's 4% in three weeks. Not bad.

I hope you are all having a profitable week. Close it out strong!

Thanks for tuning in! I appreciate your support of A Trader’s Education and hope you have a great day!

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

If you think energy names are the only tickers moving higher, you are only partially correct.

There are a few gems out there doing well despite the market volatility.

That said, I am going to start with energy because XLE is targeting $93.36 again and all signals look like it will get there after closeing just above $92 on Wednesday.

LNG is a favorite and it got its breakout above $170 last week pushing to $177.55 before cooling off.

A long lower wick on Wednesday off of a decent volume shelf tells me there is a good chance we see more upside.

RSI is strong, I like the set up for a move to $180.

Next up in the energy space is ET, which is also powering higher and looking to launch.

Key support is at $13.85 with the 20-day simple moving average providing addtional support at $13.75.

ET has a great yield and if it continues higher from here the aim is to take out the recent high of $14.09 and make a move to $15.

In a solid uptrend, I like the potential here.

Next up is NVT, which has been a complete disappointment. I will be closing this position in the Savvy Trader portfolio, which you can follow here for free.

I thought we had nice support at $51 but Wednesday NVT gapped below this level and continued selling off.

I could revisit this one but for now, I’m moving on.

DKNG back in focus but for the wrong reasons. Rejecting hard at $30.32 and back below it’s 50-day SMA.

It needs to hold above $28 or there is like a quick drop back to $26.50.

The chart is giving zero reason to get excited at this point.

Arista Networks is a favorite and one that I have not spoken enough about recently.

In a strong uptrend, RSI well above 50, and using its 50-day SMA as support, ANET continues to power higher.

The key resistance level to break through is $198.70 and there have been many recent attempts to get through.

As long as the 50-day SMA holds up as support, I like a break above $200 if market momentum to the upside gets moving again.

And of course we need to take a look at TSLA after its earnings on Wednesday and overall performance.

I think we see TSLA move a lot lower from here. Like 20% lower.

The wedge has been broken and after hours trading further confirrmed the break.

Key support at $199 (effectively the $200 psych level) is 19.5% lower from where the wedge was broken.

If you’re a long term investor that would have to look like a buying opportunity for TSLA. If it got the drop.

Markets could keep sliding to close out the week but there will be opportunities to make money in both directions.

It is definitely a stock picker’s market and using charts is the best way I know of to identify where the next trade is.

Thanks for tuning in! I appreciate your support of A Trader’s Education and hope you have a great day!

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

Earnings season is upon us and with it comes many opportunities.

Shaun and I like to trade around these reports while Kaye picks his spots and trades the binary events accordingly.

The Trading Triangle brings the charts, trade ideas, and positivity heading into another trading week.

Join us for a full review as we dissect the market and a few of our favorite tickers.

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

Follow Shaun on Twitter @ShaunClarke_ and watch his videos on YouTube @ShaunTrades_ for more on NIO, TSLA, and others.

Follow Kaye on Twitter @InvestKaye and view his videos on YouTube under the same handle @InvestKaye for more on SOFI, GOOGL, AAPL, and more.

Have a great week of trading!

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

I can’t stop talking about semiconductors. Even when I’m not talking about them, I am thinking about them.

I am an optimist, and this sector gives me a reason to be positive.

I like it for the long term. Everything has chips built in and demand is at all-time highs. I think this sector could lead the way to higher highs.

Looking at the charts, the Vaneck Semiconductor ETF ticker SMH has recovered back above the 50-day simple moving average (SMA).

It is also positioned nicely to launch off of the volume shelf right where its at, between $151-$152.

Targeting the August high of $157.62 but first need to see it hold up above the 50-day SMA.

NVDA led the way Wednesday, outperforming and up over 2.5%. Closing just below $470 it is still a little ways away from $500 but getting closer.

If NVDA does pull back I’d like to see $455 show some support.

Meanwhile AMD is setting up for a potentially big move higher.

Breaking out of the falling wedge, it paused on Wednesday but is still well above it’s 50-day SMA and RSI is strong. MACD is also curled up nicely and going positive.

Targeting $111.82 first and if AMD can keep momentum going, $116.81 after that.

A name that is setting up to follow the same pattern as AMD is ON Semiconductor.

ON just broke out of its wedge but closed just below the 50-day SMA. I would like to see a strong push through this $95 level with a close firmly above the moving average before diving in.

That said, I really like this set up. Here’s the chart.

Short and sweet this morning with thoughts of more upside.

First, we have to see how markets digest the CPI data that comes out this morning. I was surprised at the resilience on Wednesday, maybe we see more strength.

I sure would welcome it.

Thanks for tuning in! I appreciate your support of A Trader’s Education and hope you have a great day!

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

I hope you are having a profitable week of trading.

I am making moves in my long term porftolio, which I rarely do.

If you’re interested in following along for free, you can find it on Savvy Trader here: ETF Profit Producing Portfolio.

I’m shifting away from a focus on generating yield and more towards opportunities for capturing growth.

I will likely be adding QQQ as well as XLC to this ETF portfolio in the near term.

Below are the stocks in my other, much more active swing trading portfolio.

The Growth Stock Covered Call Strategy Portfolio only holds a handful of stocks at any given time. It is actively traded to capture momentum in the right sectors at the right time.

Now getting right into each stock and what's next.

CPNG has been a great performer and provided many covered call opportunities as well as nice growth along the way.

CPNG rejected at $17.65 which could prove to be tough resistance. I do like considering selling covered calls at the $18 strike, expiring November 10th.

Selling these calls brings in roughly $72 per contract. This equates to about 4.1% in just 30 days.

ET is a name in the energy sector that I really like and it is making a move back towards $14 aftter retesting $13.30.

I am holding on for the ride and the 9% dividend yield.

You could consider selling the 14 strike call options expiring Nov 10th to collect about $25 per contract.

This is not as juicy as the CPNG premiums, but a respectable 1.8%.

RIG is another energy name. This one is testing my patience and now has the 50-day moving average above it providing resistance right at $8.

RIG needs to power through, otherwise I might cut my losses and move on. If it flirts with $7.60 I am out.

I am not selling covered calls here at the moment but the Nov 10th, 8.50 strike price does bring in about 3.2% so it isn't a bad idea. I'm just not sure I want to be in the trade that long though.

NVT is an electrical components company and is the last holding in the portfolio. It has been a bit of a letdown so far but did move up nicely off of $51 which as been support.

It now needs to power through a volume shelf here at $53 as well as take out the 50-day SMA at $54.

Tough to do so I'll be watching closely. If it stalls, I will exit early. Targeting $55.52 to the upside.

I won’t get a chance to trade the open today. Best of luck if you get after it!

Thanks for tuning in! I appreciate your support of A Trader’s Education and hope you have a great day!

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

There are really only two stocks that you need to be watching to understand where markets are heading.

I’ll get to them shortly.

First up, I’ve started to trade the open again as the market is presenting nice opportunities. I’ve always enjoyed trading the open.

I’ll be focused on $431.85 for SPY which was the high from two Fridays ago.

Monday SPY moved above this level, tested it right at the close and moved higher.

Two trade set ups that I’ll be watching for.

For upside, I’m looking for a retest of 431.85 and bounce, taking entry on the move up off of this level. I like considering the 433/434 strike calls, same day expiration.

If you prefer to slow down the price action a little, move the expiration date out and test which duration works best for your style of trading.

For a downside trade, I’m looking for a drop below the 431.85 level. If SPY attempts to break back above but gets rejected I like taking a short position.

For this trade, I like considering the 429 strike puts expiring the same day.

These are hyper quick trades that I am in and out of in a matter of minutes. Occasionally for a couple of hours.

I like using a 15% stop loss and focus on taking the best possible entries.

I also like taking profits on an initial move, leaving about half of the position on for additional run.

Ok now let’s talk about the two key stocks to watch and why.

META

After back to back days of big moves up, META finds itself above the high from just 3 weeks ago and targeting $326.20 next.

If shares push above this target level I expect a retest (as usual) and continuation higher.

You can see a very nice bounce off of the 50-day and 20-day moving averages which both fell at about the same level.

At this same spot there is also a volume shelf which provided support.

If META gets moving I like the odds of the overall market following along.

GOOGL

Shares of GOOGL reached $139.16 in September and nearly got their again Monday.

A break above this level will get investors and traders attention. A race to $150 could be in the cards for GOOGL.

Interested to see if $136.50 is tested and can hold. If it does I think 139.16 will be taken out quickly.

If both META and GOOGL can make these moves higher, I like a Q4 rally for both the S&P500 and NASDAQ.

Tech will be all the rage again.

Thanks for tuning in! I appreciate your support of A Trader’s Education and hope you have a great day!

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

Not a great start to October but a great finish to the week with a big move up on Friday nearly across the board.

The Trading Triangle dives head first into your favorite stocks including where we think AMD might be headed, a look at a potentially great set up for NVT, and opportunities with XOM and MARA.

Join us for a full review of this week’s charts as we dissect the market and a few of our favorite tickers.

If you enjoy the podcast, be sure to watch live every Sunday on YouTube where I host The Trading Triangle with friends Shaun and Kaye.

Also check out the A Trader’s Education Newsletter for weekly breakdowns of trading strategies and trade ideas.

Follow Shaun on Twitter @ShaunClarke_ and watch his videos on YouTube @ShaunTrades_ for more on NIO, TSLA, and others.

Follow Kaye on Twitter @InvestKaye and view his videos on YouTube under the same handle @InvestKaye for more on SOFI, GOOGL, AAPL, and more.

Have a great week of trading!

This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.