A stock featured in a recent Junior Hall of Famers report has triggered an entry today, and it has a lot of room to run.
Earnings are on the horizon, but we'll play this stock with a defined-risk spread that takes a little of the sting out of the options' cost while giving us the ability to participate in upside follow-through should we get it.
Our International Hall of Famers list is composed of the 100 largest US-listed international stocks, or ADRs.
We've also sprinkled in some of the largest ADRs from countries that did not make the market cap cut.
These stocks range from some well-known mega-cap multinationals such as Toyota Motor and Royal Dutch Shell to some large-cap global disruptors such as Sea Ltd and Shopify.
It's got all the big names and more–but only those that are based outside the US. You can find all the largest US stocks on our original Hall of Famers list.
The beauty of these scans is really in their simplicity.
We take the largest names each week and then apply technical filters in a way that the strongest stocks with the most momentum rise to the top.
Based on the market environment, we can also flip the scan on its head and filter for weakness.
Let's dive in and take a look at some of the most important stocks from around the world.
One of my junior analysts (Rick! He's the Man!) brought a stock to my attention that is in an attractive sector that could fly under the right conditions.
Add to this that there is a high short interest and there is "meme" stock potential, and this could really be an upside portfolio-buster for us.
In this scan, we look to identify the strongest growth stocks as they climb the market-cap ladder from small- to mid- to large- and, ultimately, to mega cap status (over $200B).
Once they graduate from small-cap to mid-cap status (over $2B), they come on our radar. Likewise, when they surpass the roughly $30B mark, they roll off our list.
But the scan doesn't just end there.
We only want to look at the strongest growth industries in the market, as that is typically where these potential 50-baggers come from.
Some of the best performers in recent decades – stocks like Priceline, Amazon, Netflix, Salesforce, and myriad others – would have been on this list at some point during their journey to becoming the market behemoths they are today.
When you look at the stocks in our table, you'll notice we're only focused on Technology and Growth industry groups such as Software, Semiconductors, Online...
In today's Flow Show, Steve Strazza and I discuss our growing frustrations with the current market environment. Seems neither our bullish bets nor our bearish bets are gaining any traction in this tape.
What can we do with this information?
Watch the show below to see how we arrived at the details for today's trade.
Here's the Play:
I like entering into a $FCX February 30/35/45/50 Iron Condor for an approximately 70-cent net credit. This means I'll be short equal amounts of the February 35 puts and 45 calls, and long the same amount of 30 puts and 50 calls to cap my maximum risk:
As long as $FCX stays inside the range of our short strikes (above $35 per share and below $45 per share), we'll profit in this trade.
I'll leave a resting order to close this entire spread for a 30 cents net debit to book my profit. This will represent a capture of a little greater than 50% of the premium I collected up front from...
If you want to know what's moving markets this week, and how we're thinking about profiting from it, then the Morning Show is for you!
Today's guest is Jay Woods, New York Stock Exchange Floor Governor and Chief Global Strategist at Freedom Capital Markets. He messaged me that he disagrees with my take on the market so we're about to debate LIVE on the show. You're not going to want to miss this one!