Making a Long Term Bet
Here's a one-year chart of COMPASS Pathways $CMPS:
That breakaway gap on April 20 was the result of some legislation signed into action which opens the doors to accelerated research in the areas that would help benefit companies like COMPASS.
The stock has consolidated nicely since that announcement, and another leg higher looks imminent.
I'm going to position for the "long-term" in this name. I put long-term in quotes because I can only go out to January 2028 with options, currently. This gives us 620 days to potentially ride an adoption trend.
So I'm getting involved today and I plan on holding for awhile.
Here's the Play:
I bought $CMPS January 2028 $10 Calls for $4.70 per contract. This premium I paid today is the most I can lose.
For now, I'm not stopping out of this trade. I'm in it for the long-haul and I've sized my position so that I'm comfortable with it becoming a zero. If/when the stock moves meaningfully in my direction, I may apply a trailing stop at that point.
I'm in it to win it. No profit target. No stop loss. Enjoy the trip.
If you have any questions on this trade, please send them here. Or better yet, hit me up in the ASO chatroom so we can all benefit from the discussion.
If you missed my most recent ASO video Jam Session, you can catch a replay on Stock Market TV.
