TAOST Free Swing Trade Idea As of close 20 Dec 2019

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Subject: TAOST Free Swing Trade Idea As of close 20 Dec 2019

"Emotional Capital is the single most important trading asset in your arsenal."

-- The Trader

Happy Holidays Friend:

I hope you're enjoying the season in whatever way suits you best/gives you the most joy.

Guess what's most fun for me.

Speaking of fun...

I had an interesting conversation with an old friend/former colleague this week. Turns out he's becoming a convert and wants me to teach he and his kids how to use charts to trade short term.

Now it's not overstating it to say that this guy has long been a true proponent of so called "fundamental, long-term investing." And he's always poopooed the idea of hyper compounded growth via short term trading as only so much voodoo.

Wonders never cease. It's all I can do to take the high road.

Mostly...

Here's the latest simple swing trading idea.

Description

Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling nearly 19 million square feet, including land for development. Focused on premier West Coast epicenters of innovation, media and technology, its anchor tenants include Fortune 500 and leading growth companies such as Netflix, Google, Square, Uber, NFL Enterprises and more. Hudson Pacific is publicly traded on the NYSE under the symbol HPP, and listed as a component of the Russell 2000 and the Russell 3000 indices.

Details

Weekly Chart

I like Hudson Pacific Properties here as a potential breakout play. It's tested the all time highs more than once and the chart pattern is one of my all time favorites. I would drop down to a daily (or lower) timeframe to stalk a long entry... There are a number of interesting places to place your stop loss. If not playing via options (below), I would use a fairly conservative level and place my stop below 32.

Options

There aren't a lot of options here... and yes that was intended. I like the idea of $.20 March Calls ($20 per contract) in anticipation of the stock breaking out to the upside. The options market clearly feels some upside potential for the stock given the largest Open Interest in the March'20 month is the 35 strike calls at 151.

Do note, liquidity here is crap (thus the big price spreads), and yes, that's a technical term. So, if you're able to get contracts in assume that they'll expire worthless unless you get a sizeable breakout... and size your position accordingly.

Trade well.

The Art of Simple Trading, PO Box 240356, Charlotte, NC 28224, United States

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Subject: TAOST Free Swing Trade Idea As of close 20 Dec 2019