Sagar
Buying breakouts vs. buying at support and being early in the game.

Here is one technique I sometimes use to make a trade guaranteed risk-free while being able to participate in further up move.

$RGS.

1) Its industry is strengthening in recent periods.

2) The stock is up by more than 6% today.

3) Most peer stocks are also up.

4) Short squeeze potential.

5) Excellent earnings growth.

6) Today the stock is breaking above Memory trendline resistance, giving a breakout setup.

7) I took a long position six days ago on 9th Jan using the Memory support (a CUE Bounce long setup). I opened that position using stock. Today, that position has covered the initial profit target. I booked a profit on my entire stock long position and used part of the profit to buy a call option expiring after the next earning date (which is on 27th Jan).

That is one technique I sometimes use to make a trade guaranteed risk-free while being able to participate in further up move.
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