November was the “shot heard ‘round the world” for tech growth stocks.
When Jerome Powell came out and “revealed” that inflation wasn’t transitory, any stock with a high P/E was taken to the woodshed.
Looking at January options expiration, it would’ve appeared that the growth trade was completely over and you should’ve just moved on…
That’s not what our Roadmap was telling us.
As things fell through the floor, some individual stocks came back into levels where we expected buyers to show up again (based on our Roadmap).
That’s what happened with Celsius Holdings (CELH)…
But our trade entry had a unique twist that marked the stock’s exact low.
CELH stock image
CELH had a very obvious support level from last year’s pivot levels.
Many times, when a level is too obvious, you will see a “stop run” to flush out any weak hands.
Just underneath that support level was a key low volume node (LVN) that gave us a much better entry point.
On January 28th, we sent an alert to PVA clients to pick up the CELH April 55 calls for 2.40.
On February 1st, just two trading days later, we were able to scale out for 5.20, a 116% return on risk.
Then, on February 10th, CELH arrived at a huge level where we expected profit takers…
So we closed out more of the calls for 9.80, which is a 308% return on risk.
If you had picked up 8 call options, then you could’ve realized $2,600 in profits.
Not bad for a 2-week hold!
The best part:
That was just one of the names we picked up. We also scaled out of several other January positions for some nice gains.
These are the kinds of key entries you discover when you use our Trading Roadmap.
CELH stock image
If you want to learn how it works:
