7/6 Best Idea For The Week Ahead

This week’s best idea is a potential activist target in my opinion, it is a company I know very well and it has been going through a rough patch for a few years due to some internal management issues since the founders departure. No, it isn’t Amazon although the same could be said about them. Recently this company has seen multiple put sales, actually 5 in size nearly at the money which is a sign to me that value is seen right here at current levels. The potential buyer bought a decent sized stake 2 years ago during the market wide dip and I think he makes a move to take the company private at some point.

I’m going to have 3 scenarios to play it from put spreads to sell for income to risk reversals trying to maximize a move higher or buyout. As you’ve noticed recently I’m giving multiple options to play these best ideas in the deeper weekend dives. It’s just something I wanted to add because so many of you have various objectives and risk tolerance levels and that is what options exist to do, give us various options. The good news with this name is most analyst targets also sit 40-50% higher than the stock currently sits. So there is alot value in even just buying shares. With these weekend best ideas I really should find a different name because they’re not actually my best ideas, these are more longer term trade ideas based off option flow I’m seeing and value that exists. Names you can add to your book longer term is my goal with these posts. Again with these names, the way I structure these trades in my posts, most of the time the actual name doesn’t even have to work, that is the beauty of risk reversals, if you place them for a credit, you can get paid even if the upside of the trade doesn’t work. That is max utilization of options.

My actual best idea is go long the mag 6 and don’t waste time with the rest of the market because those names are unstoppable, for now, but I can’t write about that every weekend literally every one of those is hitting new highs this weekend after doing so last weekend as well. You see my actual positioning for the moment and it’s 80% Amazon calls and 20% Apple calls. That is working great for me and everyone who followed but at some point the trend will break there and I will exit. I’m just a trend chaser, there’s always a new sector being bought and for 18 months it has been big tech. Those Apple 2026 calls I took 2 weeks ago are up over 30% in a very short period, for leaps that is very rare to work that quickly but Apple has made a powerful move in a short timeframe and the IV picked up. The easy buy only the mag 6 trade won’t work forever, but you know my stance of pushing things in an uptrend and then saying goodbye when the trend breaks down.

Also I usually don’t do posts on Sunday but tomorrow I have a special one, I asked a handful of the people in the discord who I feel have done the best trading all this data over the last 2 years I’ve done this to give me blurbs to post on what they do and how they utilize it, I think it will be beneficial to alot of you who ask me what to do with all this information. The reality is there is no 1 way to answer that and these people all have different styles and all have found success trading in their own style around the same information.