trading – Theta Bandits

Top Pick Tuesdays – Shake Shack, Inc.

Theta Bandits — Tue, 11 Feb 2025 09:38:26 +0000

Shake Shack, Inc. (SHAK:NYSE)
Price at Preparation: $109.90 (Feb 10^th, 2025)

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. Our live trading webinar is open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send you the details to our next session.

Webinar Sign up

Now back to our regularly scheduled programming…

What they do

Shake Shack Inc. (SHAK:NYSE) is engaged in serving an American menu of food and beverages, crafted from a range of American foods.

Burger category includes ShackBurger, SmokeShack, Shroom Burger (a vegetarian burger), Shack Stack, Avocado Bacon Burger and Hamburger.
Chicken category includes Chicken Shack and Chicken Bites.
Wines offered include the Shack Red, Shack White, and Shack Rose.
Non-alcoholic beverages include serving Abita Root Beer, Shack-made lemonade, organic fresh brewed iced tea, Fifty/Fifty, Honest Kids organic apple juice, and Shack20 bottled sparkling waters.

The Company operates approximately five hundred locations including domestic and international.

Welcome back to the Theta Bandits Top Pick Tuesday, where we search the markets to serve you up fresh ideas that could be a potential winner in any portfolio.

Opinion

Before we dive into today’s pick, we want to highlight that today is more aggressive than usual in that this is centered around the company’s earnings report on February 20^th, 2025. This should be approached with caution.

Shake Shack Inc. (SHAK:NYSE) has their quarterly earnings report (ER) next week as pointed out above. An ER event is guaranteed for volatility, which for investors and more conservative risk profile people is not in the comfort zone. However, for traders this volatility gives an opportunity with a good risk /reward. As such we look to the history and produce a probability for repeating the pattern, and hopefully we are right. With trades like this we cannot stress enough, only risk what you are willing to lose.

A second data point to note is that McDonald’s Corporation (MCD:NYSE) reported February 10^th, 2025 and jumped up +$14.12 USD or +4.80%. These two companies share the same sector and could potentially be a tell for a similar move.

Finally, looking past the volatility event to the longer term, the analyst street consensus has 11 Buys, 13 Holds, 1 Sell with 12-Month Price Targets (PT) as follows:

Low: $107.00 USD (-2.64%)
Average: $135.77508.50 USD (+23.54%)
High: $160.00 USD (+45.59%)

Plan

As usual, find the chart below with following colors marked:

Blue: 52-week high.
Red: 52-week low.
Green: 12 Month PTs (high / avg / low).
Orange: Support/resistance lines.
Yellow: Our plan.

Included in visual aid below there are multiple pieces of information on it, some which you have seen before such as the blue and red lines for the 52-week high and low and green lines to indicate the 12-month PT for low, average and high. Let’s get into the yellow markings.

Continuing from the opinion section above, there are multiple yellow circles which are highlighting the ERs over the past 4-quarters, plus the next ER coming up. Note those marked (1), (2) and (3) follow a very similar pattern around ER with a short run up to the event, a big move up with a little continuation before starting to fall back. The circle not numbered is the only ER in the last year which did not follow the pattern. Which gives a 75% chance for the upcoming ER to follow the pattern. As a protection method for this type of trade, set a stop loss using the support lines below according to your risk profile. Since this is a volatile event, another potential method could be to play a small initial amount for the event and IF we get the reaction we are looking for, then add more for continuation or just take the win.

Using the support/resistance lines and looking back over the past year, we can see this price forms a strong support as this level, with the price hitting the current support/resistance level multiple times. This is another piece of information to use for the run-up to the ER event, as the price should bounce off this level to the upside.

Usually, we would give price targets to hit, but since the main aim is the ER event, this is not applicable. Any profit is a win to be taken. Post the event when the volatility subsides this trade can follow the regular steps we usually go through, securing profit as the price moves through the support / resistance levels with an aim for the 12-month avg PT of $135.77 USD or higher as a bonus.

As a subscriber, you are invited to our Theta Bandits Discord Community; a hub for trading tools and a community to ask questions, share ideas and strategies on various tickers daily. For those joining the discord from this newsletter, we are offering a limited time special: 20% off the discord monthly subscription for 6 months with the coupon “SUBSTACK20” – When we trade together, we learn together!

RISKS

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up

Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.

Top Pick Tuesdays – Microsoft Corp.

Theta Bandits — Tue, 04 Feb 2025 09:52:00 +0000

Microsoft Corp. (MSFT:NASDAQ)
Price at Preparation: $410.92 (Feb 3^rd, 2025)

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. Our live trading webinar is open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send you the details to our next session.

Webinar Sign up

Now back to our regularly scheduled programming…

What they do

Microsoft Corp (MSFT:NASDAQ) develops and supports a range of software, services, devices, and solutions. It operates as follows:

Productivity and Business Processes: Comprises products and services in the portfolio of productivity, communication, and information services of the company spanning a variety of devices and platform.
Intelligent Cloud: This is the public, private, and hybrid serve products and cloud services of the company which can power modern business.
Personal Computing: Products and services geared towards the interests of end users, developers, and IT professionals across all devices. The firm also offers operating systems; cross-device productivity applications; server applications; business solution applications; desktop and server management tools; software development tools; video games; personal computers, tablets; gaming and entertainment consoles; other intelligent devices; and related accessories.

Welcome back to the Theta Bandits Top Pick Tuesday, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio.

Opinion

Microsoft Corp. (MSFT:NASDAQ) is considered a “blue chip” stock that over the last year has traded places with both Apple Inc. (AAPL:NASDAQ) and Nvidia Corporation (NVDA:NASDAQ) for the title of the worlds most valuable company, with all three having a market capitalisation greater than $3T USD. This company is really part of the building blocks of today’s society and used in everyday ways you will probably not even realise anymore, for example in the growing use of AI over the past few years. As such, over the past year the stock has consolidated in a range and post their quarterly earnings report (ER) last week, which even though beat expectations it is showing weakness and sitting in the lower part of the range and at a price that looks promising for a potential upside.

We are not the only ones to have this view, a second data point to consider is the analyst street consensus, which has 57 Buys, 3 Holds, 0 Sells with 12-Month Price Targets (PT) as follows:

Low: $425.00 USD (+3.43%)
Average: $508.50 USD (+23.75%)
High: $650.00 USD (+58.18%)

Plan

As usual, find the chart below with following colors marked:

Blue: 52-week high.
Red: 52-week low.
Green: 12 Month PTs (high / avg / low).
Orange: Support/resistance lines.
Yellow: Our plan.

The included visual aid below has a few pieces of information on it, some which you have seen before such as the blue and red lines for the 52-week high and low and green to indicate the 12-month PT for low, average and high. Let’s get into the yellow markings.

First, on the left of the chart, there is the line up which was the previous breakout, which leads to the second phase of the horizontal line marked “ consolidation range” – this is because over 2024 and the start of 2025, even though we have had movement up and down, there is a clear range to the top and bottom which could not be broken and the price from a year ago to today is not very different. Third, usually after a consolidation we get a breakout, which is what we are looking for.

Keeping in mind the range mentioned, notice the current price while at the bottom end of the range is not quite the bottom. There are supports indicated for supports to indicate buy points. Three points of the current price of $410.92 USD, $397.97 USD and $385.58 USD are called out as potential spots to potentially buy shares. Below $385.58, I personally would not give the position too much rope before cutting the position, take the loss and move to the next trade – although this decision needs to be determined by your own trade risk profile.

Once in the trade, those familiar with our methods know we like to mitigate risk on everything. This can be achieved by securing as much of the original investment as possible, until there are only profits remaining to do the heavy lifting for the remainder of the trade. This leads us to look at the “targets” section, where the price action should push the stock price up to the top end of the range. For those looking at this as a trade only the resistance lines at $433.98 USD, $447.70 USD and $456.77 USD are good places to secure partial profits. Using profit, we could look to hit the previous 52-week high of $468.35 USD and above, keeping in mind the 12-month average PT is $508.50 USD. As always, protect your initial investment by setting and updating stop-losses as the price moves through resistance lines.

This is only one method how to trade this stock. We discuss other potential methods of attack through our Theta Bandits Discord Community; a hub for traders to ask questions, share ideas and strategies on various other tickers daily. For those joining the discord from this newsletter, we are offering a limited time special: 20% off the discord monthly subscription for 6 months with the coupon “SUBSTACK20” – When we trade together, we learn together!

RISKS

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up

Top Pick Tuesdays – Data Center Supply Chain

Theta Bandits — Tue, 28 Jan 2025 10:04:48 +0000

Data Center Supply Chain

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. Our live trading webinar is open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send you the details to our next session.

Webinar Sign up

Now back to it…

What are they

Data centers are centralized facilities that house an organization’s IT operations and equipment, enabling the management, processing, and storage of data. They serve as the backbone of modern digital infrastructure, powering everything from cloud computing and online services to critical business operations.

Comprising servers, storage-, networking-, and security-systems, data centers are designed to ensure high availability, scalability, and efficiency. For all of this they will require advanced cooling systems, robust power supplies, and redundancy measures to minimize downtime and maintain performance.

This week at Theta Bandits, rather than an individual Top Pick – we have chosen a sector and diving in on the supply chain for ideas that span multiple sectors with a common thread. This could bring one or many fresh ideas and potential winners to any portfolio.

Opinion

With the new US government taking the reigns with a strong mandate, a key piece of information that we are concerned with this week is the “Stargate” project, which is a partnership planning to invest up to $500 billion USD in artificial intelligence (AI) infrastructure over the next four years, with an initial commitment of $100 billion USD. The primary focus is on constructing massive data centers and the necessary energy generation facilities to support this development.

Looking above at what data centers are, we can see there is a lot going on in the space. We also know that if all goes according to plan this project has a runway for at least 4 years. We might not be able to call everything right, but let’s have a look at the pieces of the puzzle and you can judge what is a good fit for your portfolio based on your individual risk tolerance.

Breakdown

We will start with names in an area of the Data Center supply chain and dig into them with an explanation why they fit. We will not be able to capture them all but will provide a rough guide of where to look for further investigation into your trading journey.

EQIX:NASDAQ / DLR:NYSE

Equinix, Inc (EQIX) and Digital Realty Trust, Inc (DLR) are both examples of realty companies which specialize in creating space for and housing the data centers. This is core to which everything is built around and ensure that the facilities run successfully.

MSFT:NASDAQ / GOOG:NASDAQ / AMZN:NASDAQ

Microsoft Corp. (MSFT), Alphabet, Inc (GOOG), Amazon.com, Inc (AMZN) are examples of the companies who service the end users and typically will have many facilities each that might be run by the realty companies above. These companies will typically use the data centers for their cloud-computing (e.g. Azure, GCP or AWS) or online services (e.g. cloud storage) which service end users like you and me with which ever platform or eco-system we use.

DELL:NYSE

Dell Technologies, Inc (DELL) is a good example of a hardware provider, which provide the racks and racks of servers used to service the cloud-computing and online services above.

NVDA:NASDAQ / AMD:NASDAQ

Nvidia Corp. (NVDA) and Advanced Micro Devices, Inc. (AMD) provide the chips used in the servers to power software and AI in use above.

VRT:NYSE / FIX:NYSE

Vertiv Holdings, LLC (VRT) and Comfort Systems USA, Inc (FIX) seem like they do not fit in this supply chain. However, the heat generated by the sheer number of chips and servers continuously working requires A LOT of cooling. This is an important piece of the puzzle, or the facilities would overheat and fail.

OKLO:NYSE / SMR:NYSE

Oklo, Inc (OKLO) and NuScale Power Corporation (SMR) Is more of a future-proofing bet. MSFT, GOOG, AMZN have been investing in these types of companies to power their data centers in the future as these facilities are using more and more power with advancing AI. These companies are both involved in the Nuclear Energy Field in the creation of small modular reactors which can be used to provide power with a clean energy. While this is a new technology and an early entry, we still require traditional power to bridge the gap until this can be built, tested and scaled up.

XOM:NYSE / CVX:NYSE / OXY:NYSE

Exxon Mobil Corp. (XOM), Chevron Corp. (CVX) and Occidental Petroleum Corp. (OXY) round this out by being the power bridge mentioned above. All three of these names also provide natural gas, which is a method currently used to power these facilities.

The question remains, how are these traded? To see how, join our Theta Bandits Discord Community, a hub for traders to ask questions, share ideas and strategies on various other tickers daily. Traders in this community could potentially attack one or more of the same positions mentioned above using a variety of methods discussed in previous Top Pick Tuesdays – When we trade together, we learn together!

RISKS

We have a lot of information in this article; however, the stock market is never a sure thing, in any trading activity it is important to both secure profit and limit losses. Make sure to plan your trades with-in your risk tolerance and give the trade the time required to be successful, while setting and updating limits to mitigate risk and setting exit points for your position.

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up

Top Pick Tuesdays – Freeport-McMoRan, Inc.

Theta Bandits — Tue, 14 Jan 2025 09:08:41 +0000

Freeport-McMoRan, Inc. (FCX:NYSE)
Price at Preparation: $39.41 (Jan 13^th, 2025)

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. Our weekly live trading webinar is open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send you the details to our next session later this week.

Webinar Sign up

Now back to regularly scheduled top pick…

What they do

Freeport-McMoRan, Inc. (FCX:NYSE) engages in the mining of copper, gold, and molybdenum. It operates as follows:

North America Copper Mines: Operates open-pit copper mines in Morenci, Bagdad, Safford, Sierrita, Miami in Arizona and Chino, and Tyrone in New Mexico.
South America Mining: Includes Cerro Verde in Peru and El Abra in Chile.
Indonesia Mining: Operates the Grasberg minerals district that produce copper concentrate containing significant quantities of gold and silver.
Molybdenum Mines: Includes the Henderson underground mine and Climax open pit mine, both in Colorado.
Rod and Refining: Consists of copper conversion facilities located in North America and includes a refinery, and rod mills.
Atlantic Copper Smelting and Refining: Smelts and refines copper concentrate and markets refined copper and precious metals in slimes.
Corporate and Other: Offers oil and gas operations, and other corporate and elimination items.

Welcome back to Theta Bandits Top Pick Tuesday, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio.

Opinion

Freeport-McMoRan, Inc. (FCX:NYSE) is a stock that is always on my radar primarily for the exposure to the copper market, which should be in high demand for infrastructure/construction wiring, and EV motors as two examples. You might ask: “if it is always on the radar, why we are bringing this to your attention today?”

The answer is two words – “technical analysis”.

Over the past year the stock has traded within a range, using historical data as our guide there is a high probability that the pattern will repeat. This is shown in the chart (plan section below) with the yellow lines. While the stock is trading near it’s 52-week lows, it is starting to show some upside potential, which we can try to take advantage of!

A second data point to consider is the analyst street consensus, which has 16 Buys, 9 Holds, 1 Sell with 12-Month Price Targets (PT) as follows:

Low: $46.00 USD (+16.72%)
Average: $53.91 USD (+36.97%)
High: $62.00 USD (+57.32%)

Plan

As usual, find the chart below with following colors marked:

Blue: 52-week high.
Red: 52-week low.
Green: 12 Month PTs (high / avg / low).
Orange: Support/resistance lines.
Yellow: Our plan.

Since we mentioned the reason for the trade is “technical analysis”. Let’s breakdown the chart below and produce a potential plan. As usual we have the 52-week high / lows marked as well as the 12-month price targets (PT). As mentioned previously there are yellow arrows marked on the chart, these are showing the pattern within the range of the year and after a downtrend the stock usually has a nice rebound, which is what we are looking for. Towards the end of 2024 and beginning of 2025, this latest downtrend is looking to start a rebound, if this holds course and moves up, potential targets have been identified on the orange support / resistance lines of $44.40 USD, $47.07 USD and $50.77 USD. Since the stock will be getting to the top of last year’s range, there are two bonus levels at $52.46 USD and the 12-month average PT of $53.91. Nearing the top of the range there is more risk of reversal, hence the levels to secure profit should be tighter. Notice the 12-month high PT of $62.00 USD is being ignored as this is out of the trading range plan. Not all trades go our way and since we are looking for a trade in a range, we have identified the previous 52-week low of $36.26 USD as a point to cut the trade with a small loss. Also make sure to use and update stop-losses to protect the initial investment.

This is only one method how to trade this stock. We discuss other potential methods to attack this stock through our discord server community and we will discuss this trade live IF you sign up to attend our Theta Bandits Webinar – When we trade together, we learn together!

RISKS

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up

Top Pick Tuesdays – ViaSat, Inc.

Theta Bandits — Tue, 07 Jan 2025 09:28:57 +0000

ViaSat, Inc. (VSAT:NASDAQ)
Price at Preparation: $9.90 (Jan 6^th, 2025)

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. We’re re-starting our live trading webinar this week and open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send you the details to our next session later this week.

Webinar Sign up

Now back to regularly scheduled top pick…

What they do

ViaSat, Inc. (VSAT:NASDAQ) is a global communications company and is broken down into the following segments:

Communication Services: Provides a wide range of broadband and narrowband communications solutions across government and commercial mobility markets, and for fixed and residential broadband customers. In addition, this includes the development and sale of a wide array of advanced satellite and wireless products, and network and terminal solutions that support or enable the provision of fixed and mobile broadband and narrowband services.
Defense and Advanced Technologies: Develop and offer a diverse array of resilient, vertically integrated solutions to government and commercial customers, leveraging the Company’s technical competencies in encryption, cyber security, tactical gateway, modems and waveforms. The primary business focus are information security and cyber defense, space and mission systems, tactical networking and advanced technologies.

Welcome to 2025 and back to the first Theta Bandits Top Pick Tuesday of the year, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio. Let’s try kick off the year in style.

Opinion

ViaSat, Inc. (VSAT:NASDAQ) has been on the radar for a while now as this has been in a downtrend for most of 2024 with glimmers of hope. Their commercial use really got hammered because of SpaceX’s Starlink coming online which can provide higher speeds as they are in low earth orbit vs ViaSat’s satellites which are higher and therefore have a longer latency for communication. However, ViaSat is preferred as a defense and government contractor and always making improvements. Late last year it was reported the company was awarded a $568M defense contract which has seemed to stop the downtrend in stock price and provide a consolidation channel, which potentially could lead to a breakout. Reviewing how beaten up the stock is currently and the 12-month Price Targets (PT) for the average and high PT’s, the Risk / Reward ratio is too much to ignore.

The analyst street consensus has 3 Buys, 6 Holds, 0 Sells and 12-Month Price Targets (PT) as follows:

Low: $9.00 USD (-9.09%)
Average: $22.50 USD (+127.27.26%)
High: $56.00 USD (+456.66.54%)

Plan

As usual, find the chart below with following colors:

Blue: 52-week high.
Red: 52-week low.
Green: 12 Month PTs (high / avg / low).
Orange: Support/resistance lines.
Yellow: Our plan.

In the accompanying chart we have circled in yellow “watch for this”, which shows the down trend, consolidation and then potentially the breakout. Currently it looks like we are in the consolidation phase, so we want to be ready for the breakout. Since the breakout is only a potential for those more conservative traders, wait for the confirmation of the move before entering the trade – a little bit of profit at the low end is given up which makes sure the trade is going to the right way before putting money at risk. More aggressive traders can use other methods to enter the trade, which can be discussed in our discord server community. Once in the trade, those familiar with our methods know we like to mitigate risk on everything. This can be achieved by securing as much of the original investment as possible, until there are only profits remaining to do the heavy lifting for the remainder of the trade – risk free!

Identified in the chart from the current level and marked with an “X” are levels which have had a stronger support / resistance line. Near those levels is where there are targets to potentially secure profit with targets at: $11.81 USD, $15.32 USD, $19.47 USD and a bonus of the 12-month avg PT $22.50 USD (if you are feeling brave). Please make sure to use and update stop-losses to protect the initial investment.

This is only one method how to trade this stock. We discuss other potential methods to attack this stock through our discord server and we will discuss this trade live IF you sign up to attend our Theta Bandits Webinar – When we trade together, we learn together!

RISKS

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up

Top Pick Tuesdays – Top Pick 2024 – Palantir

Theta Bandits — Tue, 17 Dec 2024 09:21:25 +0000

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. We’re continuing our live trading webinar open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send the details to attend the next webinar. With the holidays upon us, we will collect emails and push restart these in 2025.

Webinar Sign up

Now back to our regular schedule…

Welcome back to Theta Bandits Top Pick Tuesday, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio. Closing in on the end of the year, this week we are showcasing the 2024 Top Pick with the greatest percentage gain of the year from time of pick until today. This was only presented back in August and has blown away expectations.

Top Pick – Palantir Technologies, Inc.

Palantir Technologies, Inc. (PLTR:NASDAQ)
Price at Preparation: $29.38 (August 12^th, 2024)
Price at Update: $75.75 (Dec 16^th, 2024)
Gain/Loss: +158%

Update

Palantir Technologies, Inc. (PLTR:NASDAQ) had the thesis of “an alternative way to take advantage of the AI trend” through leveraging AI in their platform to provide data analytics solutions and noted for being the platform of choice for government contracts. While you would imagine with an AI play, the winner should be the likes of NVDA – post their split (in June) we called out a play which has done ok, but pails in comparison. PLTR has continued to constantly beat on quarterly earnings reports, signed a deal with Microsoft for the use of the Azure platform in their toolset to provide data analytics solutions, been moved from the NYSE to the NASDAQ exchange and has proved to be the big winner of the year at the current price of $75.75 USD with a 52-week high of $80.91 USD.

Looking at the updated chart, from August 12 onward we have in purple the original date for the analysis, in yellow the previous targets, which were all surpassed before the end of October, and finally in green the big continuation up. With 2024 coming to a close we are hoping to find another winner to beat this next year. But that is a tall order!

Risk

The goal is to grow capital by securing profits along the way and limiting losses. Make sure to plan to trade within your risk tolerance, allowing time for success while updating limits and exit points to mitigate risk. The has been a best-case scenario with surpassed expectations and profit should have been secured along the way, leaving only profits to do the heavy lifting and reducing the risk of the trade.

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up

Top Pick Tuesdays – Uber Technologies, Inc.

Theta Bandits — Tue, 10 Dec 2024 07:31:17 +0000

Uber Technologies, Inc. (UBER:NYSE)
Price at Preparation: $65.74 (Dec 9^th, 2024)

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. We’re continuing our live trading webinar open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send you the details to our next session later this week.

Webinar Sign up

Now back to regularly scheduled top pick…

What they do

Uber Technologies, Inc. (UBER:NYSE) provides a platform that allows users to access transportation and food ordering services. The Company operates through two segments:

Core Platform: Consists of Ridesharing and Uber Eats. Ridesharing refers to products that connects consumers with drivers who provide rides in a variety of vehicles, such as cars, auto rickshaws, motorbikes, minibuses and taxis. Its Uber Eats platform allows consumers to search for and discover local restaurants and order meals through online.
Other bets: Consists of Uber Freight and New Mobility platforms. The Uber Freight platform creates a transparent and on-demand marketplace that connects shippers and carriers. The New Mobility platforms include products that provide consumers with access to rides through a variety of modes, including dockless e-bikes and e-scooters.

Welcome back to Theta Bandits Top Pick Tuesday, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio.

Opinion

Uber Technologies, Inc (UBER:NYSE) caught our eye for today’s pick after a news story late last week seemed to trigger a 10% price drop in one session. While this type of move is unusual, it is a continuation of the stock pull back from it’s 52-week high of $87.00 USD in October. Looking at the daily chart over the last year when the stock has pulled down it has often not stayed down for too long before rebounding – so can we take advantage?

The analyst street consensus is bullish with 51 Buys, 7 Holds, 0 Sells and 12-Month Price Targets (PT) as follows:

Low: $75.00 USD (+14.09%)
Average: $90.89 USD (+38.26%)
High: $120.00 USD (+82.54%)

Plan

As usual, find the chart below with following colors:

Blue: 52-week high.
Red: 52-week low.
Green: 12 Month PTs (high / avg / low).
Orange: Support/resistance lines.
Yellow: Our plan.

For this plan it is falls into the trade bracket vs the investment bracket as what we are looking for is taking advantage on a potential rebound to the recent price drop. Those familiar with our methods know we like to mitigate risk on everything. This can be achieved by securing as much of the original investment as possible, until there are only profits remaining to do the heavy lifting for the remainder of the trade – risk free!

In the chart below, we have identified and highlighted with yellow lines 2 things. First, the recent downward trend from the 52-week high and second, a strong resistance line where we indicate “above this line is bonus” – indicating this is where it would be good to exit the trade or only keep profits working. Once the stock starts moving up, targets have been set at $73.53 USD, $79.60 USD and $82.00 USD. Please make sure to use and update stop-losses to protect the initial investment.

This is only one method how to trade this movement. We discuss other potential methods to attack this stock through our discord server and we will discuss this trade live IF you sign up to attend our Theta Bandits Webinar – When we trade together, we learn together!

RISKS

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up

Top Pick Tuesdays – Previous Pick Updates

Theta Bandits — Tue, 26 Nov 2024 09:02:54 +0000

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. We’re continuing our live trading webinar open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send you the details to attend the next webinar. Since this week is Thanksgiving we will collect emails and push to the next session.

Webinar Sign up

Now back to our regular schedule…

Welcome back to Theta Bandits Top Pick Tuesday, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio. This week we are revisiting ideas from August 2024, while it has not been a long time since making these plans, there has been lots of news and the US presidential election which has led to having some very surprising results. For each recap there are two screenshots included: first the original plan and second, the continuation chart from that date.

Pick #1 – Palantir Technologies, Inc.

Palantir Technologies, Inc. (PLTR:NASDAQ)
Price at Preparation: $29.38 (August 12^th, 2024)
Price at Update: $64.65 (Nov 25^th, 2024)
Gain/Loss: +120%

Update

Palantir Technologies, Inc. (PLTR:NASDAQ) was chosen as an alternative way to take advantage of the AI trend through leveraging AI in their platform to provide data analytics solutions and noted for being the platform of choice for government contracts. Looking at the updated chart, this stock’s performance has even blown us away while achieving and surpassing their 12-month PT easily. Any remaining position in the stock should only be profits.

Pick #2 – Crowdstrike Holdings, Inc.

CrowdStrike Holdings, Inc. (CRWD:NASDAQ)
Price at Preparation: $266.78 (August 19^th, 2024)
Price at Update: $363.68 (Nov 25^th, 2024)
Gain/Loss: +36%

Update

CrowdStrike Holdings, Inc. (CRWD:NASDAQ) looked enticing as in July 2024, they released a software update which had catastrophic consequences, as such the share price paid for it. We viewed this as an opportunity and turns out we were right. The stock has recovered nicely since the incident and has hit all targets (even the risky one) set out in the original plan, as well as surpassing the 12-month average Price Target. CRWD has had a good run however, their next ER is very soon and that is always risky – make sure to mitigate any risk if the trade is still active.

Pick #3 – Ford Motor Co.

Ford Motor Co. (F:NYSE)
Price at Preparation: $11.11 (August 26^th, 2024)
Price at Update: $11.40 (Nov 25^th, 2024)
Gain/Loss: +2.6%

Update

Ford Motor Co. (F:NYSE) while still in the green, has been a disappointment. In the original plan we identified a trading range and Ford has been in a consolidation phase (as shown on the chart by the sideways movement). The thesis of the trade is still in-tact as the plan was to trade the range highlighted by the yellow box which was from previous movements. Even though taking a little longer, this is still good as an active trade.

Risk

The goal is to grow capital by securing profits along the way and limiting losses. Make sure to plan to trade within your risk tolerance, allowing time for success while updating limits and exit points to mitigate risk. The first two picks have surpassed expectations and profit should have been secured along the way, leaving only profits to do the heavy lifting and reducing the risk of the trades. The final pick has not performed as well, but the thesis has not been broken, in this case the original plans to mitigate risk should still be in place.

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up

Top Pick Tuesdays – Nexgen Energy Ltd.

Theta Bandits — Tue, 19 Nov 2024 08:40:40 +0000

NexGen Energy Ltd. (NXE:NYSE)
Price at Preparation: $7.92 (Nov 18^th, 2024)

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. We’re continuing our weekly live trading webinar open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send you the details for Friday later this week.

Webinar Sign up

Now back to regularly scheduled top pick…

What they do

NexGen Energy Ltd. (NXE:NYSE) is a Canadian company focused on delivering clean energy fuel for the future. It is engaged in the acquisition, exploration and evaluation and development of uranium properties in Canada. It is focused on optimally developing the Rook I Project. It has a portfolio of highly prospective projects, including its 100% owned Rook I property that is host to the high-grade Arrow Deposit, South Arrow, Harpoon, Bow, and the Cannon area. The Rook I Project is a development-stage uranium project in Canada. The new underground mine and mill development is located in the uranium-rich district of the southwestern area of the Athabasca Basin, located in Saskatchewan. Arrow is a 100% land-based, basement-hosted, and high-grade uranium discovery.

Welcome back to Theta Bandits Top Pick Tuesday, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio.

Opinion

Uranium has been a commodity of interest in recent months for the development of clean energy through power stations in several countries and in the development of next generation Small Modular Reactors (SMR). One such use case for this this technology is powering data centers for the likes of Amazon, Microsoft and Google. These are examples of companies that are preparing for an increase in power usage due to the extra compute power needed to accommodate future AI requirements. Given this is preparation, this is an idea that could be part of a portfolio for years to come.

NexGen Energy Ltd (NXE:NYSE) is one of the players to provide materials in the race to harness this power source. While NXE is not a large-cap producer, the small- and mid-cap producers do provide investors with more leverage through a more affordable price level to take advantage of price action.

The analyst street consensus is bullish with 15 Buys, 0 Holds, 0 Sells and 12-Month Price Targets (PT) as follows:

Low: $7.10 USD (-10.41%)
Average: $9.18 USD (+15.89%)
High: $14.90 USD (+88.15%)

Plan

As usual, find the chart below with following colors:

Blue: 52-week high.
Red: 52-week low.
Green: 12 Month PTs (high / avg / low).
Orange: Support/resistance lines.
Yellow: Our plan.

As mentioned in the opinion section above, this could be an investment for the future, not just a trade “in the short term”. However, those familiar with our methods know we like to mitigate risk on everything. This can be achieved by securing as much of the original investment as possible, until there are only profits remaining to do the heavy lifting for the remainder of the trade – risk free!

In the chart below, we have identified a pattern called a cup and handle (in yellow), and usually the patterns follow similar trends unless there are unforeseen forces that play havoc with the market. Usually once the cup completes, there is a pull back (handle) and when the handle is complete the stock will move up as indicated. Following this pattern, it appears that the stock price has completed the handle and is starting to move up. Targets have been set at $8.62 USD, $8.88 USD and $9.18 USD to secure partial profits on this trade and mitigate some risk on the trade. As a bonus, the 12-month Price Target (high) is $14.90 USD which may be hit in time. There are fairly strong resistance points at the target levels, please make sure to use and update stop-losses to protect the initial investment.

This is only one method how to trade this movement. We discuss other potential methods to attack this stock through our discord server and we will discuss this trade live IF you sign up to attend our weekly Theta Bandits Webinar – When we trade together, we learn together!

RISKS

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up

Top Pick Tuesdays – Adobe Inc.

Theta Bandits — Tue, 12 Nov 2024 14:00:00 +0000

Adobe Inc. (ADBE:NASDAQ)
Price at Preparation: $504.48 (Nov 11^th, 2024)

Hello Bandits,

Want more opportunities to trade live? When we trade together, we learn together. We’re continuing our weekly live trading webinar open to all of our newsletter subscribers.

Click the button below to sign up and we’ll send you the details for Friday later this week.

Webinar Sign up

Now back to regularly scheduled top pick…

What they do

Adobe Inc (ADBE:NASDAQ) is a United States-based global technology company whose products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. It is broken down into the following segments:

Digital media: Centered around Adobe Creative Cloud and Adobe Document Cloud, which include Adobe Express, Adobe Firefly, Photoshop and other products, offering a variety of tools for creative professionals, communicators and other consumers.
Digital experience: Provides an integrated platform and set of products, services and solutions through Adobe Experience Cloud.
Publishing and advertising: Contains legacy products and services. In addition, its Adobe GenStudio solution allows businesses to simplify their content supply chain process with generative artificial intelligence (AI) capabilities.

Welcome back to Theta Bandits Top Pick Tuesday, where we search the markets to bring you fresh ideas that could be a potential winner in any portfolio.

Opinion

Adobe Inc. (ADBE:NASDAQ) has had a volatile year with a range from a low of $433.97 USD to a high of $638.25 USD with usually big gaps forming around their Earnings Reports (ER), with the next ER reporting on Dec 11^th, 2024. They have been fighting a few battles from a failed take over attempt of Figma which was blocked, to needing to adjust to the AI boom with images and video being able to be generated with an ever-increasing quality in a rapid timeframe. With their latest toolset introduced recently, hopefully they are putting themselves in that AI race.

From the charts in the recent quarter, ADBE has been on the decline. However, recently the price has started to increase with the markets running post the US presidential election. This stock also seems more often than not to run into their ER and we have about a month until that happens. We can start to create a potential plan, with the first check being “what do the analysts covering the stock say?”

The analyst street consensus is mostly bullish with 30 Buys, 10 Holds, 3 Sells and 12-Month Price Targets (PT) as follows:

Low: $440.00 USD (-12.78%)
Average: $610.50 USD (+21.02%)
High: $704.55 USD (+39.66%)

Plan

As usual, find the chart below with following colors:

Blue: 52-week high.
Red: 52-week low.
Green: 12 Month PTs (high / avg / low).
Orange: Support/resistance lines.
Yellow: Our plan.

In the chart below, we have identified the purple vertical line as the next ER and a yellow circle with a question mark as ER can be very volatile with this stock. If you need proof, look to the left where other circles are ER’s showing major moves. Since we always err on the side of caution, securing profit to mitigate risk is a must. If the stock is bought at the current level, we have marked in orange the support/resistance lines with targets to go into ER and secure profit at $517.84 USD, $531.02 USD and $542.97 USD with stop-losses being updated as the price moves through the levels.

Post ER, if the results are favourable, we could gap-up and there are two bonus targets of $561.50 USD and $576.45 USD called out. Since ER’s are volatile this holds higher risk, so hopefully only profits are used at this point. This last level called out does represent a pretty strong resistance from the previous year’s price movement. Breaking through will be needed for the price to move to the 12-month average price target of $610.50 USD.

This is only one method how to trade this movement. We discuss other potential methods to attack this stock through our discord server and we will discuss this trade live IF you sign up to attend our weekly Theta Bandits Webinar – When we trade together, we learn together!

RISKS

If you’ve been finding our picks helpful, imagine what trading live holds. You know what to do

Webinar Sign up