USAR While the market was melting down last Friday, USAR was up 10%. A look at their business model and it makes sense that it doesn't care what the rest of the stock market is doing, they own a niche that, in the words of the Carpenters, "has only just begun." "USA Rare Earth, Inc. engages in mining, processing, and supplying rare earths and other critical minerals in the United States. It explores for neodymium, dysprosium, terbium, gallium, beryllium, lithium, and other critical minerals." USA Rare Earth Web Site "We are bringing the rare earthmagnet supply chainback to America." Most importantly for our purposes we want to start building an options position that has 5X to 10X potential into the end of 2025. To do that, we have to look at the chart and make some logical projections based upon EW & Fibonacci calculations. USAR There are a lot of moving parts in the chart below, but the key takeaway is what happens next, i.e., a breakout above $16 virtually guarantees a run through the $20's, approaching $30. It would take a break below the lower ascending parallel trend line (< $10) to cancel out the pattern. The expectation is a move to the top of the ascending parallel trend channel ($20+) by the end of this summer, circa Sep expiration, and a move to the Wave 3 target ($30) by the end of the year. Option Plays The better bet here is out to December expiration, even if it means a higher strike price. To use a baseball analogy, we are not looking for singles here, not in this ballpark, we want to clear the bases by putting one over the fences. Conservative traders can pay $3.00 for the Dec $15C, but paying under $2 for the Dec $20C may be better bet here for mega percentage returns. Dec Expiration Table Bottom Line: We have enough near term expiration options (Sep) for now, so let's begin to accumulate USAR Dec calls, looking at a price target into the high $20's to $30 between now and December expiration. GLXY There is a 50-50 chance that the bloodbath in crypto late last week is over. We should know soon enough, especially since GLXY is reporting earnings tomorrow, Aug 5th. Expectations are, well, massive: On the chance that this expectation comes to fruition tomorrow, GLXY may gap up out of its Wave IV channel, triggering a Wave V Buy Signal and run to much higher levels, shown on the 3 hour chart below. There are some relatively cheap calls, bearing Sep and/or Oct expirations, for such a move, to be bought either before or after tomorrow's earnings announcement. Can't decide? Some now, some post earnings IF GLXY GAPS-UP Wednesday triggering a Wave V Buy and run to $37-$49: GLXY 180 Minute Note: We would normally buy only after a Wave V Buy Signal, which is only "Pending" at this time. With earnings due out tomorrow, it's a riskier bet to go in now, but we could be paying up for these calls come Wednesday. Sep Expiration Oct Expiration Assuming a confirmed Wave V Buy Signal, the $30 strike in either of these two months, should be deep in the money come expiration.
