Here’s a trade in Jinko Solar (JKS) that I came across because I was using my newly updated Phoenix Finder tool. Specifically, I was looking at a hot industry group. This is the same industry group that has been “hot” since the month before and after the election, explains Danielle Shay of Simpler Trading.
What’s that industry group? Alternate energy.
I made a similar play in Fisker Inc. (FSR) following these same ideals, which I’ll talk about later, but we’re going to focus on JKS today. After all, JKS is another alternate energy play.
I noticed on my Phoenix Finder that this was pulling back right into a key area of support. I went ahead and bought long calls on this because we had an upcoming earnings report.
If you know me, you know I love the run into earnings. Obviously, I wanted to trade the run into earnings on this, but I also wanted to trade the rise of the phoenix on a hot stock in a hot industry group.
Now keep in mind I bought these long calls, but they were a little expensive. I bought them at about $8.50 a share, and I got out around $12.50. That’s a profit of about $400, or about a 50% gain or so.
It was a pretty solid trade that occurred over the course of a few days.
However, I actually ended up taking my profits earlier because I thought there was an upcoming earnings report coming up sooner than it actually was. More importantly, I started seeing several Turbo VZO sell signals. I went ahead and took an exit on this because there were some VZO sell signals, even though it wasn’t all the way at the 127.2 extension, and it wasn’t at the earnings report either.
But I wanted to be safe rather than sorry in this case. This is a good lesson in being comfortable with the profit you’ve made so far, and not feeling the need to push it any further. I probably could’ve picked up some more additional profit, but in this case, I opted for the safer exit based on what the tools I trust were telling me.
To learn more about Danielle Shay, visit SimplerTrading.com.
