Compression Breakout in MNST

[Steven Place]

After its earnings gap up, the stock has done absolutely nothing. Super tight range, so I’m expecting continuation here.

Why now? The stock has earnings in about a month, and I think investors will start to buy the stock in anticipation of earnings… or at least those that needed to sell their stock have already sold. So it’s about anticipating the anticipators.

Here’s the trade:

Buy to open MNST May 145 calls at 3.20 or lower.

If the stock closes under 133 then stop out of the calls.

[Steven Place]

Big gap and run on this Monday morning, so now’s a good spot to scale half of your trade.

Sell to close half size MNST May 145 Calls at 4.50 or higher.

Earnings are up on deck in a week or so and we’ll be all out before then.

[Steven Place]

Earnings are here so it’s time to exit. I think MNST goes higher but holding thru earnings was not the plan.

Sell To Close Rest May 145 Calls @4.20

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