Stock Market Police Stop

With the Stock market full speed ahead, MOJO sees the market police car making a stop.

Time to hedge the portfolio with UVXY. Last time MOJO Swing Newsletter traded UVXY was in the mid $25.00 range with covered calls that got exercised at $26.00. After that the stock went to $58.00 within 2 weeks. ProTrader Mike has patiently been watching it move from $58.00 back to $24.00 as the market has climbed from the basement at 15,855 and has not stopped since to 17,484 (15 straight days up in row). MOJO is now scaling into another top of the market trade play, countering with UVXY and the covered call strategy. 

Top of The Market Trade Play Strategy = (3) Scaled Buys on UVXY - the first at the open $24.00 - $24.25 the #2 Buy is +/- $.25 from that Buy and #3 should have determined the direction and get that one for a completed Buy Sequence +/- $.25 from #2. With a well timed climb back up over $25.00 towards $30.00 the covered call can come into play.

The covered call would be used to set the upside price and lock in the profit, OR if needed, to protect and cushion the downside should the stock go lower after the scaled in buy sequence.

Info on Covered Calls

 

 

DISCLAIMER:  MOJO Day Trading, or any of its employees, contractors, or shareholders or affiliates are NOT an investment advisory service, nor a registered investment advisor or ...

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