Back on October 10, 2023, in my blog post titled: New Trade: UPST,
I posted my plan to take a 1 call position in UPST, December 15, 2023 Strike Price $27.50 @ $5.20, strictly for tracking the company, Upstart Holdings.
Some background:
Earlier this year, UPST had an epic run: From $13 in early May to a high of $72+ 3 month later on August 1…an almost $60 move in less than 3 months!
And to my regret, I completely missed out on that party…
Been licking my tail since…
So in October, when I felt UPST had corrected enough and consolidated enough, I decided to take that 1 call position, simply to track it more closely…as I believed, UPST would make another inevitable dash towards its August 1 high of $72…… and I definitely did not want to miss out when this second opportunity presents itself… 🙂
Clearly I am an expert on market timing! 😂
Almost immediately after I bought my position, UPST stock decided to take a long bath…and I was forced to endure…
Since it was tracking position, and the risk was a little over $500, I was not too concerned being that my option then had more than 4 months before expiration…
Even though at one time I was ready to throw in the towel and take a loss, I decided not to…and boy am I glad… and when that same option was being offered at a steep discount, I took the opportunity and bought that same contract at 1/3 of my original purchase price.
In hindsight, that buy turned out to be fortuitous…
Today, not only are those calls up 3x my original average price, it has allowed me a front row seat to take advantage of UPST next run…which now seems imminent!
Now this is a chart worth salivating on! A print of $38 is a double-top breakout coming out of a bullish flag formation…It is still possible that to squeeze out the last remaining weak hands, the stock may turn around and make a 3-box reversal and form an even more beautiful flag formation…And should it do that, then the eventual breakout will be even more explosive.
Let’s see how it all shakes out tomorrow!
My plan on Monday is to sell my 2 December 15, $27.50 strike price calls, (current bid $9.00) and buy UPST’s February 16, $40 calls, current ask: $5.95
Happy Trading!
karim
DISCLAIMER:Â I am not a licensed broker or securities dealer. All postings made here are strictly for my personal record keeping and in no way, shape or form, am I even remotely suggesting others to follow my Buy and Sell moves. Trading options is not for the faint of heart as one’s portfolio can move up, or down 10%-50% or more during a single trading day, so trade with extreme caution. Past performance is no guarantee of future results.
Full Disclosure: I own options in the stocks of companies mentioned in my posts.