Five Prime Therapeutics, Inc. stock trades under the ticker FPRX & has recently shown great technical strength, closing for trading on 11/17/2020 at $20.20/share.
FPRX stock has quadrupled since 11/10/2020, which is indicated through its RSI, which is sending overbought signals.
While we can expect to see it decline a bit based on the RSI & the fact that its only hollow candlestick since it’s take-off day is red (down, but finished above where it opened), cautious entry from a common share position, and a position favoring puts for options is likely the best course of action.
FPRX Stock Price: $20.20
10 Day Moving-Average: $11.36
50 Day Moving-Average: $6.15
200 Day Moving-Average: $4.86
RSI: 86
From a calls perspective, I would be focused on the $20 or $17.50 strike prices, while focusing on the $20 or $22.50 strike prices on the puts.
This way your trade is protected from the overall market’s behavior, as something with an RSI this high may prove to be quite temperamental in the event of a major market drop.
Five Prime Therapeautics, Inc. stock is worth a closer look from a short-term perspective, whether via options or their common FPRX shares.
Moneygram International, Inc. stock trades under the ticker MGI & closed for trading at $8.10 on 11/16/2020.
MGI stock has recently displayed amazing technical strength, nearly doubling in price since 10/13/2020.
Moneygram has options, which are currently at-the-money when looking at the $8 strike prices.
Given the 0.56 delta of the $8 calls, I would look there and or at the $7 calls for the upside, with the same levels being targeted for the puts covering the downside, but favoring the higher strike price for the puts.
MGI Stock Price: $8.10
10 Day Moving-Average: $5.78
50 Day Moving-Average: $3.93
200 Day Moving-Average: $2.82
RSI: 80
MGI stock has great potential for a short-term trade, and is worth a second look by traders.
I’ll be looking at them today, as their pre-market price is down 2.5% to $7.90, making those strike prices even more attractive, but perhaps buying the calls & puts for different expiration dates.
Robinhood traders have become an interesting group of market participants, often making headlines as a collective after the COVID lockdowns.
This weekend I took a look at the names that made up their 100 Most Popular Stocks & ETFs list to get an idea of the types of names that they’re trading.
While the name infers that there will be 100 securities, there are only 98, as my Fidelity data screener does not cover two of the names, which was odd as usually it goes the other way around.
Breaking Down What Securities Robinhood Traders Prefer To Own
Most of the companies that you see listed in the Top 100 list are household names. UBER, F, JPM & KO are all on the list, along with some lesser known names such as WKHS, NIO & NKLA.
8 Sectors & 34 Industries are included in this list, along with ETFs.
Only 29% of all securities held offer a dividend yield, and using our Technical Rating Formula, 56 securities are above average for their technical performance rating, with 42 securities falling below the average technical rating.
ETFs are included in the list as well, but are being counted as their own unique sector & industry as there is diversity within each ETF on the list, which will be published in order of technical performance later in the article.
Examining The Robinhood Top 100 Owned Securities List By Sector
By sector, the names favor Consumer Discretionary stocks, such as PTON, TSLA & DKNG, with less emphasis going to Consumer Staples stocks, such as BYND, KO & WMT.
Healthcare (APHA, PFE & SRNE) & Information Technology (MSFT, WORK & ZM) are the second & third most popular sectors, while Energy (HAL, KOS & XOM) & Financials (WFC, IVR & BRK/B) are the second & third least owned sectors (not including ETFs, 0 in the chart above).
This makes sense, given that most retail investors are looking for products & names that they either use, or have an interest in, and or that they hear about often in the news (especially when the headlines are beneficial).
As to be expected, Energy sector stocks have the highest average Dividend Yield, followed by Financials & then Healthcare, with ETFs not offering a dividend, and the bottom three yielding sectors being Industrials, Consumer Discretionary & Information Technology.
From a Technical Rating standpoint, Consumer Discretionary has the highest average (which may be impacted by largest sample size), followed by Industrials & Information Technology.
The worst performing sectors from a technical perspective were Energy, Financials & Consumer Staples, with ETFs having the second worst performance.
Breaking Down The Top 100 Robinhood Stocks By Industry
A really interesting point when we get down into the Industries that these securities are in, is that Pharmaceuticals is the top owned Industry (somewhat expected), trailed by Hotels, Restaurants & Leisure, ETFs & Biotechnology & Airlines.
This somewhat surprised me, as more countries are announcing more COVID measures, so I’m guessing that that trend will be shifting in the not-to-distant future.
The highest yielding industry is Capital Markets, followed by Oil, Gas & Consumable Fuels, & Diversified Telecommunication Services.
From a Technical Rating perspective, Electrical Equipment is the highest rated Industry, followed by Automobiles & Auto Components, while the worst faring Industries are Machinery, Food Products, ETFs & Entertainment.
Who Are The Best Technical Performers Of The Robinhood Top 100 List?
Now, onto what everyone was waiting for, the good stuff.
I have ranked the stocks that were in the Robinhood Top 100 Most Owned list below (barring the two that Fidelity did not have data for, so 98 total names), along with how far above or below average their Technical Rating was (not going to give away all the good stuff 😉 ).
The Top 10 of the list are NIO, PLUG, SNAP, GPRO, MRNA, PENN, CGC, UBER, WKHS & GM.
The Bottom 10 by technical performance are UCO, GUSH, AMC, NKLA, ET, TXMD, INTC, IVR, USO & BYND.
What’s most interesting about this list, is it breaks down how many people outside of the markets look at different companies, sectors & industries, as stock indexes are at all-time highs & the world still has growing concerns regarding COVID-19, the US Election results & more.
It will be interesting seeing how this list shifts in the coming weeks to months.
Infrastructure & Energy Alternatives Inc. stock trades under the ticker IEA, and closed at $11.17/share on 11/11/2020.
IEA stock does not have options, so traders have to trade common shares, which have shown strong technical performance recently.
IEA is up an additional 1.16% as of 9 am in the pre-market trading, and with the NASDAQ futures trending lower as we approach the open, there may be a better entry-point coming in the near future for a short-term trade.
IEA Stock Price: $11.17
10 Day Moving-Average: $8.42
50 Day Moving-Average: $6.56
200 Day Moving-Average: $3.80
RSI: 75
If they get swept up in the NASDAQ’s trends today, a decent entry point may present itself today, but otherwise I may think to wait a little longer to find a good price.
Overall, I will be watching IEA’s stock for the days to come for a trade opportunity.
Titan International, Inc. stock trades under the ticker TWI & has recently shown technical strength, making it a prime candidate for a short-term trade.
TWI stock closed for trading at $4.99/share on 11/10/2020, putting them at-the-money for their $5 calls & puts.
After a big day on 11/9/2020, their price has outpaced their moving-averages, and their 10 day moving-average just recently crossed the 50 day moving-average, a bullish sign.
In terms of their options, I don’t see much action outside of the $5 range, as the closest other strike prices are $2.50 & $7.50, which are a pretty steep ways away from one another.
TWI Stock Price: $4.99
10 Day Moving-Average: $3.14
50 Day Moving-Average: $2.99
200 Day Moving-Average: $2.04
RSI: 82
With all of this in mind, it seems like there should be opportunity for short-term trading profits from the $5 strike price calls and puts for TWI stock.
Cooper-Standard Holdings Inc. stock trades under the ticker CPS, & had a sizable gap up on 11/6/2020.
CPS shares closed at $32.32 on 11/9/2020, as they continue to climb following that strong day of technical performance.
CPS stock has options, which I would be interested in looking at the $30 calls, as the next level up is a $35 strike price (I am looking at the 11/20/2020 expiration).
From a puts perspective, I would likely go with the inverse & purchase the $35 puts, as their delta is almost twice that of the $30 put options.
CPS Stock Price: $32.32
10 Day Moving-Average: $18.13
50 Day Moving-Average: $16.10
200 Day Moving-Average: $14.73
RSI: 84
I will be looking at their options today, likely favoring the puts, while the RSI simmers down & a new range begins to be established, but that will all depend on how they open.
Looking at the spreads between moving-averages & Cooper-Standard Holdings Inc.’s stock price, there looks to be great opportunity for short-term traders in CPS.
For those who work more with common shares, I would be waiting to see how the price tapers off before finding my entry point, as the price is 78% higher than the 10 day moving-average.
Last week provided nothing short of a wild-ride in terms of the news cycle.
Particularly interesting is that the presidential race in the US was called on a Saturday, and with the amount of information that shows there is likely to be some strength to the lawsuits against the counting process.
This will make for an interesting week ahead, particularly in the stock & currencies markets.
Beyond Meat & a number of popular cannabis names will be reporting earnings this week, along with some energy companies, which will provide interesting market movements.
In the US, the JOLTS Job Opening report comes out Tuesday, which will be worth examining as it will likely begin to show more seasonal employment changes, along with some FED speeches & the Unemployment numbers.
These will give better insights into the current state of the economy in the US, and give some idea as to how far ahead of itself the market has become.
FX markets will also be a good indicator as to what’s to come, along with bonds across the globe.
There will likely be some volatility that traders can take advantage of, and that longer-term investors can use as entry points on their favorite stocks, whether to establish new positions or to build upon existing ones.
All in all, it’s going to be a fun week in the markets, but certainly one to keep a watchful eye on.
Snap Inc. stock trades under the ticker SNAP & has recently displayed technical strength worth taking a loser look at for an options trade.
SNAP’s share price was $45.38 at the close of trading on 11/6/2020, making the $45 and $46 calls & puts the center of today’s focus (eyeing the 11/13/20 expiration date).
From a calls perspective, the $46 level has a bit more risk associated with it, as their Theta is a bit high, which is to be expected given that they’re not quite in-the-money.
SNAP Stock Price: $45.38
10 Day Moving-Average: $41.82
50 Day Moving-Average: $29.86
200 Day Moving-Average: $20.97
RSI: 77
I’m not certain that they will have a lot of near-term strength, so I may think to purchase the already in-the-money $45 calls, and the $46 puts.
This could be particularly important as their RSI settles down & a new range is fully established.
The $45 calls are less risky in the event they fail, and the $46 puts are in the same boat.
SNAP is well worth a look by any near-term trader, and longer-term traders may think to look upwards if there are more lock-down measures implemented in the not too distant future.
Scholar Rock Holding Corporation stock trades under the ticker SRRK, and has recently displayed technical strength that is worth taking a closer look at.
SRRK stock closed for trading at $42.10 on 11/6/2020, after going on a tear since 10/27/2020.
While Scholar Rock Holding Company’s stock does not have options, they are still showing enough strength that it may be worth looking to trade the shares for a short-to-mid-term play.
As a member of the NASDAQ index, SQQQ when ratio’ed properly could be seen as a good hedging opportunity.
SRRK Stock Price: $42.10
10 Day Moving-Average: $38.28
50 Day Moving-Average: $20.28
200 Day Moving-Average: $16.54
RSI: 71
While the RSI is a bit high at the moment, the moving averages suggest that there is still near-term room to run for SRRK stock shares.
Traders might think to see how it functions in the pre-market tomorrow morning, before deciding to hop into a trade here.
Otherwise, given that levels that the moving-averages are at, there seems to be plenty of potential opportunities for dip-buying while the RSI settles down as there is still a lot of upwards pressure, courtesy of the trends.
Traders would be wise to eye the candlesticks while the figure out the entry point that they want to pursue, but SRRK is certainly something worth having on their radar at the moment.
Pinterest, Inc. stock trades under the ticker PINS, and closed for trading at $59.58 on Tuesday 11/3/2020.
After gapping up on 10/29/2020, they have begun to establish a new range, after a very strong recovery from the depths of market lows in late February/March.
I have previous traded PINS call options over the summer months, and am seeing another opportunity to profit from calls & common shares of their stock again.
With the last few days showing a bit of weakness, there is a better shot for longer-term investors to get a better price as they continue to climb.
For a short-term trader using options, the $61 or $62 calls (they offer 11/6, 11/13 & 11/20 expiration) look most appealing, as currently in pre-market trading they are up another 3% from yesterday’s price, to $61.40.
Given that most traders aren’t able to buy yet for today, you can expect to see that go even higher in the early morning hours of today’s session.
PINS Stock Price: $59.58
10 Day Moving-Average: $53.06
50 Day Moving-Average: $41.98
200 Day Moving-Average: $26.91
RSI: 68
Buying the $60 calls may be safer, but also be marked up to a premium not worth paying vs. the $61’s or $62’s.
Before buying any puts, I would look to see what their technical movement looks like intra-day, as the news regarding the election, COVID & international relations/terror may weigh on their price & begin to show where the top may be.
At the moment however, it looks like the $64-$65 short-term expiration (11/6) for puts may be the best bet for hedging.
This is a stock that will continue to benefit from COVID, and given other countries are resuming lockdowns again, they may be able to muster more strength with the “stay-at-home” economy, especially if there is another virus surge in the US, warranting more shutdowns.
