Hey guys. I recently rolled over an old 401K that has roughly $30K into a new IRA account through Fidelity (where my trading account and current 401K are at). With the majority of stocks getting annihilated in Q4 (disregarding the majority of mega-cap, of course) and the Fed basically signaling they will be raising rates several times this year, with a starting target date around March I believe, I think now might be a good time to open some 6-month call options on stocks that have been beaten down in the Fintech space as well as some large-cap stocks sitting near critical support. We have earnings season coming up starting in the next few weeks and running until March or so and the following stocks typically like to run during times like these.
*Fintech*
UPST - 7/15 200C - Has taken a massive beating nearly 70% off highs. They are trying to get into the auto loan business and have other potential catalysts (partnerships) around the corner. Momentum stock that can run hard with Fintech coming back on the scene, especially at these low entry points with institutions that got out at the top. Looking for entry around $110-120.
AFRM - 6/17 100C - Another one that has been sold off and shorted to oblivion hovering around $80 from highs at $160. Have a feeling a reversal is coming soon and that this could ride on the shoulders of SQ, PYPL, COIN, etc. Looking or an entry around $75.
*Semis*
NVDA - 6/17 280C - Trading in the range of 280-320 for the last couple of months. Top growth stock on everyone's mind that has tons of potential catalysts and one that is going to be a leader in the Metaverse movement, which I believe as a whole will start to take off this year. P/E and such are high but NVDA is solidifying its stance as a stock that retail and institutions just can't ignore. No one doubts that this is an amazing company that will be a market leader, however, currently, it is a mega-cap momentum stock that is selling off and shorted due to a flat/downtrend in QQQ's. NVDA is notorious for running hard into earnings and with a blowout quarter (which they typically have) and more price target upgrades, I can see this hitting 350 well before summer. Looking for an entry around $250-260.
AMD - 6/17 150C - Similar ideas to NVDA with the semiconductors still running this year. Chip shortage should begin easing in Q1/Q2 and with the Metaverse taking off as well as the upcoming acquisition of XLNX which has been pushed to Q1, I see AMD as being a leader in this space. Volume has been hovering around 50M, and I anticipate it to increase with the above catalysts taking off and the QQQ's breaking out of their sideways trend. Looking for an entry around $125-130.
Any and all suggestions/input on these or any other 6 month plays would be greatly appreciated. Let's get this money.
Submitted January 06, 2022 at 01:10AM by BulletPlease https://ift.tt/3pXcueR
