Market Commentary: Up 600% This Year, We Nailed It
On June 6, we featured IONQ. If you’re not familiar with it, IonQ is a quantum computing company that develops and operates trapped ion quantum computers.
The technology uses individual atoms as qubits, which are the basic units of information in a quantum computer. IonQ’s computers are designed to solve the world’s most complex problems, such as drug discovery, financial modeling, and materials science.
IonQ’s computers differ from other quantum computers in a few ways.
- They use trapped ions – which are naturally occurring quantum systems – making them more stable and easier to control than other qubit technologies.
- IonQ’s computers are scalable, meaning that they can be easily increased in size to perform more complex calculations.
The company is a leading player in the quantum computing industry and has partnered with major companies like Microsoft and Amazon Web Services. IonQ’s computers are still in their early stages of development, but they have the potential to revolutionize many industries.
The arguments in favor of the technology are:
- Accuracy: IonQ’s computers are more accurate than other quantum computers, so they can produce more reliable results.
- Scalability: They also are scalable and can be easily increased in size to perform more complex calculations.
- Stability: They’re more stable than other quantum computers and less likely to make errors.
The Play
When the stock was around $5 per share, Jim Cramer recommended traders avoid it. It then doubled in price.
When we discussed it on June 6 and highlighted it was already up almost 3x for the year, but it’s gone ahead and doubled again.
Jim has suggested traders avoid it, again. When it hit $20 per share on August 1, you could certainly make the case for Jim being right.
IONQ didn’t bare any semblance to trading rationally within the bounds of support and resistance. Instead, it broke through resistance and continued to soar.
Clearly, the potential of the company remains sky high with its A-list partners and potentially highly disruptive technology. But a pullback would be nice to avoid chasing it (if you don’t already own it) when it’s already had such a good run. After all, this is a stock that was in the $3 range at the start of the year. At some point a 600% return needs to be banked.
Even if the entire position is sold, the principal can be taken off the table and the profits let run at this point in time.
How To Trade IONQ Conservatively
If chasing a high-flier like IONQ isn’t the type of rodeo ride you like, we found a way to lock in about 17% monthly using a conservative strategy on the stock, which we listed here.
It worked like a charm, and it’s still on the table, month after month while volatility remains the name of the game.
