TopOptionAlert
Oct 22, 6:59 PM
$QBTS NOV20 12C · still actionable
Zone:
$11.38 to
$11.54
Invalidation: close under
$11.20
Objectives:
$12.10, then
$13.00
The math: up 5.6% to the first objective and 13.4% to the second, against 2.3% risk on the invalidation, better than 5 to 1 to the second
Dear friend, this is a simple swing idea on a name that has been beaten down hard and is now sitting right on top of its lowest level of the past year. That floor near 11.35 held again today even while the broader market sold off, and that matters because it gives us a clean place to say we were wrong. If buyers keep defending that floor into earnings on November 5, the first place price has to prove itself is back near the prior close at 12.10, with room beyond that toward 13.00 where a round number tends to draw attention.
P.S. Watch that 11.35 floor on a closing basis. As long as it holds, the risk in this swing stays small and defined.
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