Hey there, folks! It’s Barrie Einarson from Trade Ideas and I’m back with another edition of “What Makes This Trade Great”. We’ve got an intriguing one today. I’m going to be discussing the NVKT trade and breaking down why it piqued my interest. So, let’s dive into it.

NKTX: Capturing the Market’s Attention

Now, this is an interesting case. I first noticed NKTX when it popped on my option scanner at 1056, a couple of hours after the market kicked off, and it was priced at $2. Initially, it had some minor news filtering in during the pre-market which didn’t stoke much interest.

But what transpired next was nothing short of a spectacle. NKTX had this beautifully poised setup—an idle window that lasted for about an hour and 15 minutes.

Shaking Things Up with Post-Market News

Another headline crossed the wires, this time around, relating to Lupus. Just like that, the stock saw a sudden surge, bursting into life.

What followed was a couple of topping tails. If you had traded around this period, it would have been advisable to exit at a couple of points. But ultimately, the stock just soared.

But look at this beautiful setup right here… And then all of a sudden had some more news. This is something to do with Lupus. And the stock just absolutely exploded.

Potentials in the Weekly Chart

Now, here’s where my interest truly piqued. If we were to look at the weekly chart, you’d realize that there’s room for growth, especially towards the left. You can still see some more room way up there at $4.60. I’m not predicting that it would necessarily get there, but it’s totally plausible.

After an initial lukewarm response to the pre-market news, the market seemed to warm up to NKTX once it opened. Then it had its moment of repose for roughly an hour and 15 minutes. With the arrival of the second wave of news and the resulting upswing, the trade just propelled into overdrive.

At the time of writing this, a little pullback is being witnessed. Predicting the future is a difficult enterprise but I sense that if it surpasses the $4 mark, another run might be on the cards, possibly reaching $4.50 later in the day.

Wrapping Up

And there you have it, folks! That was the tale of the NKTX trade— a trade that started off on a subdued note, showed promise during the trading hours and then completely took off. It just shows how valuable it is to keep an eye on the weekly chart and market news when making trading decisions.

I’ll be back in the trading room next time with another interesting case to break down. Until then, have a fabulous evening, Traders! See you on the flipside.