Technical Analysis of Financial Markets

A Trend Trade In The Cannabis Space

If you are a fan of the KISS (Keep It Simple Stupid) approach to trading or investing you will appreciate this one. While I focus the majority of my efforts on investing in cannabis related companies, once in a while I will line up a short term trade if a setup is available. I took one this morning in Aurora Cannabis, symbol $ACB on the NYSE.

A very simple trend is being held this year which gives us a defined risk level to play from. Most recently, wedging into that very trend line:

OmahaCharts Marijuana Stock - A Trend Trade In The Cannabis Space

For option buyers we are also working with bargain basement prices on premium here. Implied volatility is at the lows since options began trading in November.

I am long $ACB April $9 calls expiring on the 26th of this month.

That wasn’t so bad now was it?

Trent J. Smalley, CMT