UPST Plummets As We Predicted
Bank of America downgraded AI lending platform Upstart (UPST) from “Buy” to “Underperform” several days ago. They still like the stock, but they thought it was overblown. Remember, this stock has grown explosively. It was at 100 only four months ago, 200 only two months ago.
BofA gave it a price target of 300, so if you caught the watchlist this morning, my comment were to go short vs 395, and then using the levels from my analysis you could target 366 and 378 – Both hit by end of day. Sure enough, the stock ripped up to 395 at open, only to crater all the way down to … wait for it … 364 just before the close.
If you had $40,000 in capital, you could have shorted the stock and made $3,000 for every $200 you risk. If you had bought 380 put options, you could have paid $1,000, risked $200, and walked away with $1,800, a hefty 80% profit. That’s how we do.
Coming Soon to a Theater Near You … NFLX and TSLA Earnings Statements
Netflix (NFLX) announces its earnings tonight (Tuesday 10/19), and Tesla (TSLA) announces earnings tomorrow night (Wednesday 10/20). Stay tuned for possible trade recommendations in the wake of those statements.
All Eyes on AMZN and SBUX
Rumor has it that Amazon (AMZN) and Starbucks (SBUX) are on the verge of a deal, and AMZN has started climbing. Sit tight for trade recommendations on these bad boys in the coming week.
Give the Market Time to Breathe
It’s been a crazy week in the market—crazy-exciting for Edumomo students who know how to trade the Edumomo way. Just remember—after a monster run like this, the market often needs room to breathe. Don’t be surprised if we get some consolidation, and be wary of chop in the coming days. Be careful out there.
Student Trade of the Day
You don’t have to win every trade to win the day. Edumomo student Julls didn’t hit the money with call options on UPST and Coinbase Global (COIN) today, but took 100% profit on a LEAP (long-term equity anticipation securities) against Facebook (FB) and 50% profit on calls against Netflix (NFLX) to end with an account up 3% on the day.
Remember, by growing your balance 1% every day compounded, you can 10x your money in less than a year. Think of the impact 3% on the day will have. Way to make moves, Julls.