Wang's Happy Trading

bagger: a trade that more than doubles in profit; at least +100% profit. A 2-bagger would be a trade that trippled, or +200% profit.

Hello, everyone! Just returned from my vacation. Instead of jumping right back into my usual market analysis posts, I thought I’d post something more educational. I mentioned on the member site that while I was on vacation, I leisurely made some very profittable trades. It seems that I do some of my best tradings while on vacation. I think it’s an emotional/energy thing. I’m “happy” and less stressed, less worried. It is “funny” with this “money energy” thing! Sometimes, that’s what it takes to make a lot of $$$$$; get one’s energy aligned correctly (and, being “happy” could be a nice first step)!

Here are the trades that I’ll be talking about:
FSLR, as much as +165% gain

GOOG, as much as +1077% gain!!

DECK, as much as +136% gain

I will be going over the daily charts and intraday charts on these to demonstrate what I saw in the charts and go over my thought process at the time. Notice that all of these trades lasted only 1 day. Because I was on vacation and did not want to be watching the market. I would enter trades at the end of the day and take the profits in the morning. In all of these cases, the options traded higher (than what I sold them at) by the end of the day. But, since I was not monitoring the market, I was very happy with the profits that I got.

I’ll talk about DECK as Case Study #1
I started looking at DECK on 4/16 when it started going up strongly. Because it is the earnings season, I immediate checked for its reporting date. 4/24 after the market. Okay, that at least would give me more than a few days to play the momentum and get out before the earnings; then, to decide whether or not to play the earnings.

DECK (Hourly Chart)

On the hourly chart, I saw that on 4/16, after the 1st 3 hours, DECK had already gone above the hourly MAs on solid volume.

DECK (Daily Chart)

On the daily chart, I saw that (4/16) it was starting to go above the daily MAs and the daily MAs were in a newly formed bullish phase with 10- above the 20- above the 30-day MA. This was a bullish sign.

Also, back on the hourly chart, the hourly MACD had just turned positive, with lots of more room to go up. So, I decided to play the May 115 calls at $8, with the stock being just below $114. I was also more confident because DECK had come down so much since December (when it was trading at $165) that it has the potential for a big jump with a good earnings report.

On the next day, 4/17, DECK continued with its upwards momentum, charging up above $115. The hourly MAs went into their bullish formation with 10- above 20- above the 30-hour MA. Being on vacation and “leisurely” trading, I was glad to take the profits at $10.5. On 4/18, DECK continued to go up, hitting above $126. Those options traded, if I remember correctly, around $16. The hourly MACD started to flatten out, so, I knew it needed to breathe and did not chase. Because it went up so much in the “pre-earnings” run, from $106 to $126, on very solid volume, to me, it looked very likely that DECK was going to report well. I waited for DECK to come down before the earnings. The next 3 days, DECK was driven back down to about $115. I bought the same options back at $11 on 4/24, just before the market closed. On 4/24, SKX reported good earnings in the morning; this also gave me added confidence. After the market on 4/24, sure enough, DECK reported record earnings. Those options opened around $23 the next day (4/25), I believe, and, I sold them at $26 for a +136% gain. Those options traded as high as $31.5 today, 4/28.

For the analyses on the FSLR and GOOG trades, and the rest of this article, please use either the single-day pass, or come and join us for a little longer with a 7-day pass. You can now get a 1-day pass for just $9.99 and a 7-day pass for $49.99. We are presently going through some changes and the full membership subscriptions are only available to existing members.

Good night and HappyTrading! ™