Sometimes we traders overcomplicate things. With so many choices, so many moving parts, so many headlines, so many things vying for our attention on a minute by minute basis, it is easy to become overwhelmed.
It seems so obvious, but often the smartest — yet the simplest — thing to do is just keep investing in winners. Objects in motion tend to stay in motion, right? And if we can construct options trades that take advantage of that momentum while defining our risks in case we happen to be the last suckers to pile in before the reversal — then we should do that all day long and twice on Sundays, right?
With that in mind, today’s trade is a momentum name that is no stranger to anyone who has been paying attention to hot names this year. [Read more…]