Breakout Multiplier Articles

Here's the replay and chartbook from first Breakout Multiplier Mastermind class, in which I discuss the basic tenants of the Breakout Multiplier strategy and how to get the most out of it. 

There’s chatter about a potential head and shoulders top forming in NVDA. 

While it’s always good to be aware of potential reversal patterns, let’s keep things in perspective: these so-called “tops” have failed all year long.

We want to fade yesterday’s selloff and make the bet that this top in NVDA turns into a continuation pattern just like all those before it.

The underlying trend is far more important than any short-term pattern. And that trend, for Nvidia, continues to point higher.

Price is bouncing off the VWAP from August 5th lows.

This has all the characteristics I look for in a failed top, and this week, we even got a little shakeout to new lows. 

I love it when these patterns trap the bears before price springs higher. This is a common way for the failure rally to kick off.

We’re buying the $NVDA 1/24 $150...

This post was originally for paid members only and has since been unlocked for informational purposes and does not constitute financial advice.

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It’s a serious question.

Some Breakout Multiplier members will completely close trades at a max return of 10x. I’m okay with that. But, I wouldn't go any lower because you need the outliers.

I know other members who prefer to hold on to their winners until expiration (after selling the double, of course). 

There will be times when the former will work better. And there will be times when the latter strategy is the right move.

But from my experience, there is no correct way to manage these home runs consistently.

I don’t have a hard and fast rule for it.

I will be more aggressive and hold on longer if I think we’re in an extra risk-on tape.

I’ll consider what the broader market and the stock’s peer group are doing.

Whenever JC is out, the Morning Show becomes the Strazza Show. 

I invite some of my closest friends on for the guest segment, and we bring the analyst team members on for a free-for-all market discussion. It’s a blast.

Today, we had an extra special guest, David Lundgren.

I’ve learned so much from my conversations with Dave over the years. 

One of the big lessons I credit to him is the importance of outlier trades. We spent a good chunk of time discussing this on my Off The Charts podcast a few months back.

But, I’ve also learned the importance of having big winners first-hand over the years. Figuring this out has been quite the journey, and it has made all the difference for my trading.

I believe in being overly aggressive and making as much money as possible in bull markets. 

Today we held our Breakout Multiplier Weekly Strategy Session. If you’re not a member, click here to join us.

We do this every Thursday at 11 a.m. ET for Breakout Multiplier members, where we discuss new trades ideas, open positions and answer questions from the chat.

Here are two takeaways from today’s call:

• One Rule: Sell the Double

Discipline is crucial in any trading strategy. 

Today, we had a brief discussion on why it is so important to "sell the double." 

It’s the only hard and fast rule we have. But it’s critical. Without it, the whole thing breaks down.

Think of a double as a free swing at a potential multibagger. As long as we sell lots of doubles, the big winners...

Here's the replay and chartbook from the December 12 livestream. Note that we talk strategy every Thursday at 11 am Eastern time, and I answer questions in the chat room.

Be sure to join us and maximize your return potential.

Happy Friday, folks.

It was another wild week in the market. Let's wrap it up with some portfolio maintenance and general thoughts about how we made out.

First, congrats to everyone who hit big with SoundHound.

These outlier trades are actually common with our system. And we need them because they pay for all the zeros.

If you let it ride, and you are up 25x today, fantastic. 

If you didn’t. Pay attention and learn from this. It is so important to let our winners run. This is why we sell the double so religiously. It puts our minds at ease, and with the comfort of knowing we can’t lose, we are more likely to let positions go. 

In the case of SOUN, the calls were cheap, so we could own more than just 2 contracts. Larger position sizes like this make our job easier. Use it to your advantage and scale out on strength in situations like this.

If we can consistently sell doubles, we should be able to hit big trades...

Today we held our Breakout Multiplier Weekly Strategy Session. If you’re not a member, click here to join us.

We do this every Thursday at 11 a.m. ET for Breakout Multiplier members, where we discuss new trades ideas, open positions and answer questions from the chat.

One of the key benefits of buying cheap call options on low-priced stocks is the flexibility they provide when managing and scaling out of positions. This becomes especially valuable when we hit a big winner.

Take our $SOUN 1/17/25 $7 calls, for example. We...