Weekly Wiretap Pick Of The Week HOOD

MAX Trade Potential: 60%

My Trade Plan Details:

• HOOD Jan 31 $50 calls around $1.75s to $1.85 area on a morning dip
• Stop:  HOOD closes below $44
• Target 1: $53
  
• Target 2: $55
  
  

My Reasoning:

First off, HOOD recently paid off $45 million in penalties to settle a SEC case and second Morgan Stanley raised HOOD’s price target to $64 from $55 which indicates their positive outlook on the company.

I also like the bitcoin bonanza right now and how HOOD could benefit from all the bitcoin trading and price spikes of random coins.

The chart I’m looking at shows HOOD Fibonacci extensions up in the $53s which I think could be a nice mid week target. Assuming we don’t close under the $44 area for me I think this remains a strong upward trend that’s been going on for 4 to 5 months now.