Warrior Trading Blog

Swing Trade on $CHKP = 31% ROI Overnight

Swing Trade on $CHKP Pays Off Big Overnight

The swing traders were at it again this week. Finding an opportunity on a breakout runner in the form of a swing trade on $CHKP. This fast winner was a trade idea brought to my attention by a student! I love it when that happens for so many reasons. We got ourselves into this on yesterday using a bull call spread. The exact alert was a February 2017 monthly expiration, 100/105 bull call spread for a debit of .85c. Now, normally I am not inclined to buy a name that has such high RSI and just gapped up after earnings, but in this case, the small bull flag on the daily chart (see below), combined with lower implied volatility and a high call option volume told me this was worth the risk.

Turns out, we were right. After a shaky open today (Tuesday), things recovered nicely and grinded higher all day long until the very close. I address in the video recap below, exactly why I choose 30% as a profit target on most of my trades. You can see below, using that target, I was able to exit the trade at the highs, before the end of the day sell off that is so common with many larger stocks.

If you aren’t sure what a bull call spread is or how you can trade these expensive stocks with a small account, please checkout the options FAQ page.


Swing Trade on $CHKP Video Recap