Playing it Safe. Taking Profits on BROS Option Trade. Plus, Two New Trades.

Bears are getting crushed this morning. Staying Patient. Fingers crossed.

Image courtesy of flickr.com

I am recommending closing out our recently recommended Call Option trade featuring coffee retailer Dutch Bros (BROS). We have achieved a respectable profit in a week, and given the market’s volatility, it’s safer to take the money and run.

• Sell to Close Dutch Bros (BROS) April 17, 2025 $77.50 Call Option. Bought 2/24/25: $4.60. 3/3/25 intraday price: $7.12. Return for this trade: $252/contract (35%).

Market Update

The bears are getting crushed this morning as last week’s debacle in both the stock and Bitcoin markets fueled a huge rise in pessimism which put the bears in a vulnerable position which is playing out this morning via a violent short squeeze. Whether this is the end of the selling or not remains to be seen. So we need to stay alert and be ready for just about anything.

Even as the major indexes have given back some of their early day gains, the New York Stock Exchange Advance Decline line is off to the races, crossing back above its 20-day moving average. NYAD has remained in a trading range during the extremely volatile trading action over the last couple of weeks, which suggests that we remain in consolidation pattern until proven otherwise.

The U.S. Ten Year Note yield (TNX) remains in a bullish pattern, now having broken below its 200-day moving average and possibly heading for a test of the 4% area.

In this type of market, staying nimble is the way to success. In this issue I am adding two new trades in stocks which are exhibiting excellent upside momentum.