Jinkosolar $JKS trade

TL;DR

JKS (Jinko Solar) experienced a significant drop, prompting the trader to close out puts and take profits at a support level.

Transcript

hello what's up everyone davis martin millionaire trader and teacher here with you talking about jks jingko solar man what a move for this one here already down 7.25 with markets not looking too good um and this one here very interesting i sent out this morning 72 92 support all right uh that was a critical support level it in my opinion this one a... Read More

Key Insights

• 🎚️ Support levels play a crucial role in trading decisions, with the 20-day simple moving average being a significant support level for JKS.
• 🥡 Taking profits at a support level is a strategic move to avoid risking gains and to capitalize on potential buying activity.
• ™️ Not all trades will be as quick as this one, and it is necessary to have a trade plan for both bullish and bearish scenarios.
• 🏣 Monitoring post-earnings price action can provide valuable insights for future trading decisions.
• 💪 Solar stocks like JKS, Canadian Solar, First Solar, and SunPower have been strong performers recently.
• ™️ Market conditions and sector performance can impact the success of trades.
• ✋ High frequency trading computers and algorithms can influence price movements at support levels.

Questions & Answers

Q: Why did the trader close out puts on JKS?

The trader closed out puts on JKS because the stock broke a critical support level, indicating a potential move to the downside. It made no sense to remain bullish on the stock when it was trading below support.

Q: Why did the trader take profits at the 20-day simple moving average line?

The trader took profits at the 20-day simple moving average line because it acted as a support level where many other traders would also be taking profits. This level tends to attract buying activity, potentially reversing the stock's decline.

Q: Will the trader hold through JKS's upcoming earnings?

No, the trader does not hold through earnings as it is considered risky. However, the trader plans to monitor the stock after earnings and may consider trading it again based on the post-earnings price action.

Q: Are all trades as quick as this one?

No, not all trades are as quick as this one. The trader emphasizes that it would be unrealistic to expect all trades to be fast. Quick trades like this one are infrequent, and it is important to have a trade plan for different scenarios.

Summary & Key Takeaways

• JKS (Jinko Solar) dropped 7.25% amidst a market downturn, prompting the trader to close out puts after breaking a critical support level.

• The 20-day simple moving average line acted as a support level for JKS, leading the trader to take profits at this level to avoid risking gains.

• While not all trades are as quick as this one, the trader emphasizes the importance of having a trade plan for both bullish and bearish movements.