The Bottom Line:
- SNOW was trading around $114 prior to the recent update, and the author bought more stock at $116.05 and $118.85 after it broke out over $116.
- The author initially bought stock at $114.35 and $115.75, and sold an upside call at $121 for Last Friday the 11th.
- The stock had a notable breakout, moving well above $125, currently around $123.39, with a target price set between $128 and $130 to fill the gap.
- As long as SNOW holds above $122, it’s considered a hold, and the author sold a $128 call for $0.80, reducing the basis and providing profit potential if the stock rises.
- The author noted a trend line coinciding with the $128 target, and the overall market outlook is positive, with the stock remaining profitable and viewed favorably for future trading.
SNOW Stock Performance Prior to Update
Pre-Update Stock Price and Breakout Levels
Prior to the recent update, SNOW was trading around the $114 level. Brad, a market analyst, had stated that if the stock breaks out above $116, he would consider buying more. True to his word, as the stock pushed higher, Brad added to his position, purchasing shares at $116.05 and $118.85.
Initial Trades and Options Strategy
Before the breakout, the initial trades on SNOW were executed at $114.35 and $115.75. As part of the trading strategy, an upside call option was sold at the $121 strike price, expiring on Friday, August 11th. This options play aimed to capitalize on potential upside while managing risk.
Post-Breakout Price Action and Targets
Following the update, SNOW experienced a significant breakout, surging past the $125 level and trading around $123.39 at the time of analysis. The target price range for the stock was set between $128 and $130, with a focus on filling the gap created by the sharp upward movement. As long as SNOW maintains its position above the $122 mark, it is considered a hold, with the potential for further upside.
Author’s Initial and Subsequent Stock Purchases
Increasing Position and Adjusting Risk
As SNOW continued to climb, Brad capitalized on the opportunity by purchasing additional shares at $116.05 and $118.85. This strategic move allowed him to increase his position in the stock while it was trending upwards. To manage risk, Brad sold a $128 call option for $0.80, effectively reducing his cost basis and providing the potential for profit if the stock reaches or surpasses the $128 level.
Bullish Sentiment and Trend Analysis
Brad expressed a positive outlook on SNOW, noting that the stock remains profitable and appears promising for future trading opportunities. He identified a trend line that coincides with the $128 target price, further reinforcing his bullish sentiment. Commenting on the recent price action, Brad stated, “if you did buy it at $116… that’s a heck of a trade in a couple days,” emphasizing the impressive performance of the stock.
Future Outlook and Potential Moves
Given the favorable market conditions and the stock’s strong performance, Brad is considering buying more shares of SNOW. However, he also remains open to the idea of waiting and observing how the stock behaves in the near term. With the stock trading around $123.39 and the target price range set between $128 and $130, there is potential for further upside. Brad’s overall assessment of SNOW is positive, as he remarks, “snow is still looking good… it’s very very profitable,” indicating his confidence in the stock’s future prospects.
Significant Breakout and Price Target
Breakout Confirmation and Price Targets
The recent breakout in SNOW’s stock price has been significant, with the stock surging past the crucial $116 level and currently trading around $123.39. This breakout confirms the bullish sentiment surrounding the stock and validates Brad’s decision to buy more shares at $116.05 and $118.85. The price target for SNOW is now set between $128 and $130, with a particular emphasis on filling the gap created by the sharp upward movement.
Risk Management and Options Strategy
To manage risk and potentially profit from the stock’s upward momentum, Brad sold a $128 call option for $0.80. This strategic move effectively reduces his cost basis and provides the opportunity for additional gains if SNOW reaches or surpasses the $128 mark. As long as the stock maintains its position above $122, it is considered a hold, and Brad remains confident in its future performance.
Trend Analysis and Market Outlook
Brad’s analysis of SNOW’s price action has revealed a trend line that coincides with the $128 target, further reinforcing his bullish outlook. He noted, “if you did buy it at $116… that’s a heck of a trade in a couple days,” highlighting the impressive gains achieved in a short period. Looking ahead, Brad is considering buying more shares of SNOW or waiting to see how the stock performs in the near term. Overall, he remains highly optimistic about the stock’s potential, stating, “snow is still looking good… it’s very very profitable.”
Holding Strategy and Call Option Selling
Maintaining a Profitable Position
As SNOW continues to trade above the crucial $122 level, Brad’s strategy involves holding the stock while managing risk through the sale of call options. By selling a $128 call for $0.80, he effectively reduces his cost basis and positions himself to profit if the stock rises to or above the $128 mark. This approach allows Brad to maintain a profitable position in SNOW while limiting potential downside risk.
Capitalizing on Market Momentum
With SNOW currently trading around $123.39, Brad sees further potential for the stock to reach his target price range of $128 to $130. The recent breakout above $116 and the subsequent surge in price demonstrate strong market momentum, which Brad aims to capitalize on. As he stated, “if you did buy it at $116… that’s a heck of a trade in a couple days,” emphasizing the impressive returns achieved in a short period.
Adapting to Market Conditions
Brad’s positive outlook on SNOW is reinforced by his observation of a trend line coinciding with the $128 target. This technical analysis supports his bullish sentiment and informs his decision-making process. As market conditions evolve, Brad remains open to buying more shares of SNOW or waiting to see how the stock performs in the near term. His adaptability and willingness to adjust his strategy based on market developments are key factors in his successful approach to trading SNOW.
Trend Line Alignment and Positive Market Outlook
Bullish Trend Alignment and Price Target Confirmation
The recent price action in SNOW has been particularly encouraging, with the stock breaking out above the $116 level and currently trading around $123.39. This breakout aligns with a trend line that coincides with the $128 target, further confirming the bullish outlook for the stock. Brad’s analysis of the trend and his identification of the $128 to $130 target range underscore the potential for further upside in SNOW.
Profitable Trading Opportunities and Risk Management
Brad’s strategic approach to trading SNOW has yielded impressive results, with his initial purchases at $114.35 and $115.75 followed by additional buys at $116.05 and $118.85 as the stock continued to climb. By selling a $128 call option for $0.80, Brad has effectively managed risk while positioning himself to profit from the stock’s upward momentum. His positive sentiment is evident in his statement, “if you did buy it at $116… that’s a heck of a trade in a couple days,” highlighting the significant gains achieved in a short period.
Favorable Market Conditions and Future Prospects
The overall market outlook for SNOW remains favorable, with Brad expressing confidence in the stock’s future performance. His assessment that “snow is still looking good… it’s very very profitable” underscores his bullish stance and suggests that the stock has the potential to continue its upward trajectory. As Brad considers buying more shares or waiting to see how the stock performs, he remains open to adapting his strategy based on market developments while maintaining a positive outlook on SNOW’s prospects.
