Hello Trader,

One of the collaborations we’ve been working on that I’m most excited about is between myself and The Professor, Mike Parks, who is Raging Bull’s Senior Training Specialist.

Mike is a veteran trader and educator, and his addition to Total Alpha is going to add a level of insight that can only come from decades of experience in trading and market education.  

Mike has incredibly knowledgeable on all things markets and his talent for teaching new traders how to use market signals to choose the right options strategies is unmatched.

AND Mike will now be contributing more trade ideas to Total Alpha and continuing with daily education sessions in the Master’s Club.

WAB

Wabtec (WAB) has options, but they are too wide of a spread to trade.  

But this pattern still has me liking the stock to trade, especially with six straight down days in a row. 

Why?

Because with a stock this oversold, price action typically sets up an opportunity for the stock to bounce. 

What do I want to do here?

I’m looking to buy the stock at $93.95 with a stop at $91.45. 

The target is $103.09.  

Why?

Here I am risking $2.50 to make $9.14. Over time, that is a great trading setup in my book.

WMT

WMT, trusty Walmart. 

I see a diagonal trend line. This line starts on December 2 until Jan 13th. 

There is also horizontal congestion of price going sideways for 15 days. That provides support that I am willing to sell puts beneath. 

Trade idea

Sell 4 Feb 22 142 strike and purchase 4 Feb 22 140 strike. 

I am looking to sell this credit 142/140 spread for 0.43. So long as WMT can trade above $142 by the Feb 22 close, the full premium on this trade would be received. WMT closed Friday at 145.06.

Walmart also had some positive news over the weekend. It filed trademarks with the U.S Patent and Trademark office for a future presence in the Metaverse. It looks like WMT intends to create its own cryptocurrency, NFT’s as well as sell virtual goods across the categories of electronics, home decorations, toys, sporting goods, and personal care products.

It will be interesting to see how the market reacts to this news on Tuesday! A significant gap higher could be a profit-taking opportunity!

EXC

Exelon Corporation (EXC) 

On a 4 hour chart, the stock is close to being in a squeeze setup.  

I am looking to purchase the Feb 55 strike when the stock crosses above the stock price of $57 on the breakout towards the upper pivot.  

The target one is $59.51 and target two is $61.43 on this trade. 

EXC has yet to break out above $57, so Mike is watching this stock closely and has his alerts set!

Bottom Line

I’m very excited to have The Professor, Mike Parks, contributing to the Total Alpha team. Mike has a history of helping me find great trading setups, and I look forward to more great trade ideas from this seasoned professional. 

Not only that but the education and years of teaching experience Mike will provide in the Master’s Club to subscribers is second to none. 

I’ll be keeping a close eye on these 3 setups going into next week. They are WAB, WMT, and EXC. I’d like to wish everyone a happy Martin Luther King Jr. Day. Enjoy the festivities and the long weekend. The market is back at it tomorrow!