Weekend Trader Series
July 21, 2024
Open Positions Update
- The Celestica (CLS) September 20, 2024, 50-strike call reaches its time-stop this Monday, July 22. Close the position at a limit price within range of the current market price when you place the order.
- The Seagate Technology (STX) September 20, 2024, 100-strike call reaches its time-stop this Monday, July 22. Close the position at a limit price within range of the current market price when you place the order.
- Close the 3M (MMM) November 15, 2024, 100-strike call on Monday, July 22. Close the position at a limit price within the range of the current market price when you place the order.
The following is this week's recommendation:
Iris Energy (IREN)
Place a limit order to buy the Iris Energy (IREN) September 20, 2024 10-strike call at a limit price within range of the current market asked price when you place your order. At the close on Friday, July 19, this option was offered at $3.10. IREN closed at $11.30 on Friday, July 19.
Do not attempt to enter this position after Monday's close.
Please use the following guidelines to manage the position:
- Exit the position if the option is at a 100% gain from your entry price.
- If the option has not reached its target profit by 3:00 p.m. Eastern time on Monday, August 12, close the position.
- If there is a change to the above closeout parameters, we will notify you in your regular Sunday evening communication.
Iris Energy (IREN) stock just pulled back to its historically bullish 50-day moving average, which over the past three years produced returns of 23.2% for the shares a month later in 67% of circumstances. This trendline also coincides with the 50% year-over-year return level, triple this year’s low of $10.95, as well as the 38.2% Fibonacci retracement of the stock’s initial public offering (IPO) highs and lows.
Short interest is rolling over from all-time highs, down 23.2% in the most recent reporting period. Implied volatility (IV) is also reasonable at 120%, given it accounts for mid-September earnings and the 63-day historical volatility (HV) of 112%.
Our recommended September 10 call doubles at a level prior to the average 12-month target of $17 and on a 41.4% rise in the underlying security.
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