CEI Stock Trade for 800% Returns! (Camber Energy Stock)

now this is crazy because we're getting a hedge and still the maximum return to us is going to be an 8x 809 is the maximum return which would be amazing if you were to even get anywhere close to that [Music] what's up guys and welcome back to the channel this is sean from we are investing a channel that is dedicated in investing in personal finance on today's video we are going to go over a trade that has massive potential in my personal opinion so let's dive right into it all right guys hop into my laboratory let's take a look at cei this is camber energy incorporated um right now it's trading at a share price of a dollar 37 cents now i want to take a look at this chart because i think it paints a really good picture it tells us the narrative of what's actually happened to cei and that would kind of lead to the reasons why i think this could rebound and we could see massive gains in this stock now if you take a look at this chart this is the 30 day one hour chart for cei and this paints the whole story for us it was 65 cents back in early september it hit a high of 4.85 cents it had a massive sell-off rebounded a little bit has been trending down and today it had a nice day up around eight percent now what's the story of this stock well in the matter of one two three four five trading days the stock went from a dollar fifty two cents to a high of four dollars eighty-five cents that's a massive move to the upside also in addition to that volume is one of the highest this is one of the most active stocks in the stock market even today when volume is less than it was during this massive run-up to the upside there are a lot of pumpers on this stock there's a lot of people in social media pumping up this stock when we hit that high there was a little bit of a sell-off we had somewhat of a peak now that could be pumpers unloading their position but also very unique to cei is we had a short report by carousel capital that was released on october 5th and following that report the stock was three dollars it hit a low of around a dollar then after that we saw the stock bounce back a little bit now this is super important and let me explain why usually when you see a pump and dump that happens naturally but this case it did not happen naturally there was a short report and leading up to the short report there was a little bit of a selling pressure that could be the people that are part of the short report carousel capital building up their position getting their shorts ready and then when the report comes out they hit the stock again and also the people that follow carousel capital short the stock and also you get a lot of people hitting their stop losses and you get a lot of people selling their stock because they don't know what's going on and carousel capital really likes that because that makes people believe that carousel capital can move markets they can move markets just like the pumpers can and right now this is a stock where it's a battle between the pumpers and the short sellers and i honestly believe that the short sellers did not cover their position at around a dollar a share i don't believe that this rebound here was shorts covering i believe it was just more people coming in buying the stock because they know that there was going to be at least a dead cat bounce now if that's the case then there still are a lot of shorts in this stock and i think a lot of shorts are going to be in this stock because fundamentals do not justify a share price of a dollar 37 cents and it it makes sense to short the stock but with the amount of volume that we have the amount of people that are pumping up the stock how low the float is this is a very very dangerous game for short sellers and there could be a massive spike to the upside that's what we're hoping for and that's how we're going to play cei now there's a few things that we want to keep an eye out on to indicate that sellers are no longer in this stock because pumpers and buyers are going to wait to sellers leave to reintroduce a position into this stock because then the path upwards has a lot less resistance and it's easier to get this stock to move higher it's easier to move a stock from a dollar to four dollars when you don't have sellers when you only have buyers it's much easier to manipulate the stock and have a much higher bid and ask for the share price so something to keep an eye out on is that volume is decreasing and we see sellers leave the stock when volume starts to dry out and the stock does not move downwards anymore that's a good indication that most sellers are out of cei now some technicals to go over real quick if we take a look at this doctor is somewhat of a trend to the downside and there is also this trend right here and then we had a breakout to the upside today the stock was up 7.87 percent now this little move is nice but it's not enough we need to see some kind of resistance be broken and that could be around a dollar sixty cents if we see the stock go above a dollar sixty cents that would be an indication that hey maybe we have broke this resistance here and this is somewhat of a reversal and once that reversal is done that's a level of confirmation and more traders will feel comfortable getting into cei now i want to move on to how i am going to play this stock because i think it's super important when you trade these kinds of plays that are boom or bust that you put yourself in a really good position and you maximize the amount of money you can make while minimizing your risk you want to stretch your dollar as far as you can you want to go shopping for the best trade possible you want to get the most bang for your buck and when it comes to these kinds of stocks it's always going to be options options are the way that you are going to maximize your potential upside and with a stock as risky as this is you need to leverage your money to make really good returns to make it worthwhile if you were just going to 2x your money or you could potentially lose half just by buying common shares then it's not worth it because more often than not you're going to be wrong on these kinds of trades and you need that massive upside potential to make it worth it now if we take a look at this chart i do not know when this pump is going to happen if it ever happens this is obviously the best date to buy april 14 2022. january of 2022 might also be a good day to buy that gives us at least a couple of months but these trades can take three to four months to play out it could take a long time for sellers to finally get out of the stock so that a pumper will be able to manipulate it and that's what we're banking on right here is that we're going to see pumpers get back into the stock with low flow and bring the share price even higher because of that potential reward that we're discussing in this video so personally the way that i like to play is i like these april 14 2022 calls now this is a stock that doesn't have a lot of strike prices they're at each dollar you have one dollar two dollar three dollar four dollar five dollar six dollars now obviously the further out in the money you get the lower you're going to pay but for this stock to hit six dollars it needs to be a massive pump and that might not happen considering that the high before was 4.85 cents it's going to be very hard to break that resistance but if it does how much higher would it really go is it going to go above six dollars that's a really tough thing to do and i highly doubt it but moving back to this options chain the one dollar is very enticing because the stock would only have to be over a dollar eighty for you to be profitable on this trade however i don't wanna pay eighty dollars per contract for that position and since the six dollar contract is trading for 25 cents which is kind of ridiculous because who thinks that that's actually going to happen i'd rather use that six dollar option to help hedge my one dollar bet and the way to do that is to buy a vertical to buy a call debit spread and we're going to analyze this trade real quick so if we go to analyze we go to buy trade we go to a vertical and we go for the one dollar and six dollar we're going to pay 55 cents and you can probably get it for even cheaper if you drop this price a little bit and just wait for your order to get filled now thinkorswim does a great job in showing us our risk profile and i already know what it is because i trade these all the time the max risk to you is 55 dollars per contract if this stock is below a dollar you will lose 55 dollars per contract if it's above a dollar you will lose x amount of money until you hit your breakeven point which be which would be one dollar plus the debit so 155. so your break even is going to be right here at 155. now the maximum potential reward you can get in this trade because you are hedging your bet by selling the six dollar call option against your position is still massive the maximum potential reward will occur if this stock was to hit six dollars and you would make 445 dollars per contract the way to calculate that is your spread your spread is six minus one so it's five so five hundred dollars is the maximum you can make in this contract but you're paying fifty five dollars up front so the maximum return would be four hundred forty five dollars now this is crazy because we're getting a hedge and still the maximum return to us is going to be an 8x 809 is the maximum return which would be amazing if you were to even get anywhere close to that and in addition to that why this is so powerful and why i think this is the best way to do that is because we are saving thirty dollars per contract instead of paying eighty five dollars for the one dollar strike because people are stupid and paying for the six dollar strike now you could sell it at thirty dollars and save that money so all in all we're only paying fifty five dollars instead of eighty 85 and that might not sound like a lot because 30 dollars isn't a lot of money but if you're buying a bunch of contracts it will add up and you need to stop thinking about oh it's only 30 dollars you need to start thinking about things percentage-wise and 30 off of 85 is a 35 saving on that position let's say you're looking at a car and you're thinking about getting a honda accord well if you were only going to pay 35 more you could probably get a mercedes-benz e-class or a 5-series bmw instead you might as well do it it's only 35 yeah that sounds stupid right because it's way more expensive to buy a mercedes or bmw compared to a honda this is the same situation 35 is 35 percent no matter what the cost is and you need to start thinking about how can i get into trades for the cheapest way possible while also being able to experience great returns if they play out you don't want to handicap your position too much but since people are paying for the six dollar strike use that to your advantage be a smart trader and make more money with less money i'm not going to put a ton of money in this position because it is extremely high risk probability is low but if something was to happen the potential reward is really high and it's worth the risk in my personal opinion so if you guys like this trade let me know in the comment section down below hit that like button and if you have another trading strategy for cei and let me know what you're doing in the comment section down below thank you guys so much for sticking around and watching the entire video please consider hitting that subscribe button ringing that bell and smashing that like button when you ring that bell youtube will notify you when i make new videos so you stay in tune with the top trades out there in the market right now in addition there is a patreon where every sunday i post a weekly report of bangers this week we hit on all five trades and all of them were over a hundred percent returns massive gains great trades great strategies we have a great community behind us a link is provided down below i'll catch you guys later it's been real it's been fun it's been real fun and this is we are investing and together we are invincible see ya [Music] you

Channel: Sean - We Are Investing

Views: 1,765

Rating: 4.9245281 out of 5

Keywords: cei stock, cei, cei stock analysis, cei stock price prediction, cei stock predictions 2021, cei stock predictions, camber energy stock, camber energy, cei stock today, camber energy stock predictions, cei technical analysis, camber energy stock prediction, cei stock technical analysis, stocks, stocks to buy now, we are investing, we are investing youtube, everything money, stock moe

Id: KVBx5dVnoxg

Length: 14min 33sec (873 seconds)

Published: Sat Oct 16 2021