Last week I watched a great interview with Mish Schneider on RealVision, where she pointed out that some good thing are happening lately for the legalized Cannabis :
Looking into it, I found a nice SSC breakout on the weekly chart, with plenty of room to go up (maybe back to the 36 resistance).
On the daily chart I noticed a strong Summer, with a Z3 BO, so I decided not to wait and buy 50 calls to Apr (which will give the position enough time to go up).
2 Days later as it continued to trade very strong, I scaled in to a full size position by buying another 50 Calls.
I could have bought shorter-term calls, but then it is more about luck, because the odds are usually against that. The Apr calls are well suited to my trade frame and target.
Today it keeps exploding, so obviously it has good probabilities to make a substantial move.
I guess that you can buy a lot of weed with that :)
3 months to go, and I'm already ATM.
After doing some more research I decided that I want the exposure to be focused in USA Cannabis companies: TRSSF/CURLF/CRLBF/GTBIF/TCNNF.
Something big is happening with these companies. For example TRSSF (TerrAscend), just raised 224m$ ,2 weeks ago, at 12.35$ (and it was trading at 2$ just 6 months ago).
It turned out that there is a specific ETF for that with 650m$ AUM : MSOS.
So I sold the MJ options and invested the premium including the profits in MSOS options:
Flexibility is important in trading...
The following trade frame is an example for educational purpose only.
We are not an investment advisory services, nor are we registered investment advisors or broker-dealers and do not purport to tell or suggest which securities customers should buy or sell for themselves. Customers should always check with their licensed financial advisor and their tax advisor to determine the suitability of any investment.
It should not be assumed that the methods, techniques, or indicators presented in this example will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. We, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.