The gap theory is short and simple. Not everything needs to be lengthy and laborious. "Everything should be simple as possible, but not any simpler"
Once a new cycle has begun and you see a breakaway gap in the STARTING of a move, you get confirmation of this new cycle. HOLD.
Once the trend is continuing for some time and...
... for a .14/contract debit.
Notes: In for .48/contract (See Post Below) and out for .14 here with 28 days to go. .34 ($34) profit per contract. 30-day's still pretty decent here at 45+%, so will consider re-upping in June (56 Days) some time next week.
MJ faces a key test of support as mj stocks continue to roll over and challenge important levels.
A break of lateral price support could bring in lower levels to test including the trendline and deep 200-d MA rising support.
... for a .48/contract credit.
Notes: High 30-day at 64.9%. Selling the 15 delta strike here. 2.74% ROC at max as a function of notional risk. Will take profit on approaching worthless or, if in the money, take assignment and sell call against.
Looking for the juice? Here's where it's at ... .
Options Highly Liquid Single Name >$10/Share With Earnings in the Rear View, Sorted By 30-Day with a >50% Cut-Off:
CRON (43/236) (Cannabis)
AMC (21/218) (Theatres)
TLRY (40/185) (Cannabis)
SRNE (5/165) (Biotech)
INO (4/145) (Biotech)
ACB (11/127) (Cannabis)
NKLA (12/125) (EV)
CGC (23/99) (Cannabis)
As MJ has corrected 42% from the recent high, it offers an objective long entry as it is bouncing on triple support: down trend line since September 2018, horizontal support, and recent up trend line since November 2020.
Daily chart on MJ is looking bullish. RSI is heading up and the MACD looks to be closing red and hopefully turn green. Looking at the candle sticks it looks like we could be bouncing off the 50 sma line and head up from there. Wouldnt be surprise to see previous highs or even reach new highs sometime this week depending on the market.
similar chart to previous one, im guessing these are in the same sector. also bounced off previous support and trying to rally. top trendline is keeping it down for now. will eventually break though! be patient :)