It’s Black Friday, and I don’t find out about you, however the turkey hangover is in full impact.
To maintain with the spirit of the vacation, I’m not trying to handle any particular trades as we speak.
Nonetheless, there’s one firm I’m looking ahead to subsequent week that I consider is about to blow up.
Kohls (KSS) is a current earnings winner, and it additionally has a 27% quick float.
As you’ll see within the chart above, it received its massive pop after earnings.
Plus, its 27% quick float means the celebration might simply be starting.
For those who’re unfamiliar with how quick floats work – quick floats are share of merchants short-selling the shares – that means they assume the inventory goes to go down.
However when it does the other and goes up – like KSS is right here – it means the shorts need to rush and purchase their shares again to shut positions.
This buyback can create a ton of demand which drives the worth even larger. Like including extra kindling to an already burning hearth.
That potential explosive transfer is precisely what I’m seeing arrange in KSS proper now.
I’ll be trying to go together with choices on KSS subsequent week.
Motion Plan: To get my actual entries and exits on this potential KSS commerce, I invite you to me in Revenue Surge Dealer.
Aftershocks trades are probably the most predictable methods I take advantage of to commerce earnings.
Final week, I closed 4 of 5 trades for winners utilizing this technique, together with a 40% return on LHX.
To get my actual entries and exits on all my Revenue Surge trades, click on right here.