Posted on December 21, 2020
We’re offering a fireball trade today (think Tesla smothered in butter), with wicked leverage and a clearly-defined downside.
But before we get there, a quick rundown on Friday’s expiries and STOP levels.
According to the closing action from the following stocks, we’ve deduced the most appropriate STOP buy orders for each, allowing for both a cap to potential losses as well as some play for the stock.
Should a given STOP be set too wide for your own risk tolerance, tighten it up appropriately.
Here they are –
And remember – an open STOP order must always remain on the trade. If the STOP buy gets triggered, set a new STOP sell at the same level. Continue the process until the trade is closed.
The underlying in question this week is Gentherm Inc. (NASDAQ:THRM), a stock that’s up 50% in the last 50 days, if you know what I mean…
They’re an industrial outfit that makes “climate comfort systems”, i.e., heaters and ACs and the like, but as the company’s fundamentals reveal, we’ve approached a white-hot stage that should have been chilled some time ago.
To wit –
They’re expecting great things over the next year, but, then again, who isn’t?
With kind regards,
Hugh L. O’Haynew