At RagingBull, we often stress the importance of preparation, patience, and execution.
The most important part of the first two is quite simple on paper— traders need to track their stocks and wait for setups.
The truth is, with so many things going on at once and new promising tickers popping up every day, this trivial task becomes increasingly complicated.
Not for the professional that Nate Bear is, though.
His biggest trade this week was yet another beautiful example of the above principles in action.
It all began with some pot…
Ok, not literally. But ever since the original cannabis sector ran up 2 weeks ago, Nate's eyes remained glued to the pullback.
His core strategy uses a unique combo of high short interest and compelling technicals and several "green" names showing great potential...
Namely, ACB.
After a nearly 3.5x rally in a matter of days on Joe Biden's presidential win, the stock has pulled back but spent 2 weeks consolidating tightly above former resistance at $6.
All the while, despite the stabilizing political environment, ACB maintained a nearly 16% short interest.
Any new uptick would force many shorts to run for "covers," quite literally.
Nate kept watching it closely and patiently day in and day out.
Under normal circumstances Nate likes to wait for confirmation before getting in.
But as the stock kept holding higher and the consolidation kept tightening up, Nate decided to get slightly ahead of the curve.
Here's the entry alert he sent out in Lotto X midday on Monday:
Nate got yesterday's (Friday, the 27th) CALL options with a $7 strike price for 55c per contract.
A risky trade for sure— the forthcoming expiration meant little wiggle room. He knew it very well and only bet what he could afford to lose.
Plus, the main counterweight of high risk is high reward. If it works, it pays well.
Well, pay this one did…
Next morning, the stock opened near $9, or 30% higher as Donald Trump tweeted he'll authorize the transition process.
Nate's CALLs also opened higher!!!
*See disclaimer below
In case that wasn't enough, Nate decided to take a shot again at ACB yesterday.
He sent out the alert, with hopes of an over the weekend move.
But the stock popped early…
The trade was enough to cover all Nate's Black Friday shopping needs…
*See disclaimer below
Take advantage of Nate's Black Friday offer here to access his favorite 8 trades over the upcoming month and learn how he's trading these markets.
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