Below are 4 stocks that could run higher if this market doesn’t fall off a cliff. They are all displaying superior relative strength in a market that doesn’t have any.


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5 Responses to “4 Longs Worth Watching”

  1. NoTribe Says:

    ZAGG looks like it has a strong set up on the 60 day moving averages as well. 2hr, 60m, 30m, all show either:

    It spikes lower here to rebound quickly– it does this once in a while. I have alerts set up to take advantage of it, cause it can be done in 10-15 minutes.

    It turns back up, like its been doing, and goes back up to the top of the ascending wedge.

    I don’t know which, so I prepare for both. Sold puts at 13 and 14 yesterday, so will profit from the latter. For the former, will sell Oct and Nov puts at 10 and 9.

  2. NoTribe Says:

    I would take the shares too, if it closes under 14 or 13 this week. I haven’t been assigned ownership of any shares in ZAGG puts to date, but I’d wouldn’t mind it, because I’d then start selling covered calls as well on the stock.

  3. NoTribe Says:

    A trading strategy I’d like to use with ZAGG, after having some shares assigned, is to sell covered calls at a higher strike price, then buy the next higher calls outright, and probably at a ratio, 1:2 or 1:3– whatever is closest to even money. That would be an excellent way to be positioned for buying calls and not having to lose the credit if they expire otm. Because sooner or later, this is going to 20+ upside. My guess is by the end of the year too.

    And calls are dirt cheap. There seems to be an unbalance, which I don’t totally understand as of yet, due to the very high percentage of shares being shorted– about 50% of float.

  4. jeff pierce Says:

    Thanks for the strategy Notribe.

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