🚨 I’ll be live at 11:30 a.m. ET🚨
We’ll look for new income trades, manage assignments and more [tap to join us for Market Masters]!
Most traders running wheel strategies focus on stocks that move sideways — selling puts and calls in a fairly small range and collecting premium while nothing dramatic happens.
That’s fine if you want consistent singles and doubles. But that approach doesn’t create big money in your account.
I hunt high-beta names with explosive upside potential using what I call a measured bounce pattern. It’s not my Market Roadmap bounce pattern, where the stock holds above the 61.8% retracement and we’ve got about a 75% probability of getting an extension.
The measured bounce is closer to a coin flip. But here’s why I chase it anyway…
The eventual targets can be absolutely ridiculous.
When a 5X Return Beats a Dozen Safe Trades
I’ve been positioned in AXT (AXTI) using this exact setup. If the move up is wave one and the correction is wave two — Elliott Wave structure we discuss regularly on Market Masters — then the potential wave three target for AXTI sits at $258 per share.
From my $53 cost basis, that’s almost a five-bagger.
I’m seeing a similar measured bounce pattern on IREN Limited (IREN), where the potential target reaches around $200 from recent entry levels near $24. That’s another possible multibagger if the structure plays out.
Those numbers are exciting, but position sizing matters, and it could take a long time for said structure to play out. Trade small enough that a setup taking a few weeks or even a couple of months to develop won’t wreck you if it goes against plan.
The goal is to stay in the game long enough to capture the outsized move — not bet the account on one chart.
AXTI has a beta above 3, meaning it has historically been far more volatile than the broader market. That’s exactly what I want. More volatility creates bigger moves and premium, and bigger moves create multibagger potential instead of incremental gains.
You’re also at risk for bigger downside moves.
Success Stories From the Past
Sometimes capturing that potential requires patience. You may have to sell premium as far as a year out while waiting for the larger thesis to develop.
I saw that kind of opportunity with Red Hat (RHT) after the dot-com bust. Linux was smoking hot and the longer-term setup rewarded traders willing to look beyond the next expiration cycle. The lesson wasn’t simply to hold and hope. It was to use time, premium and position size together while giving a strong idea room to work.
That’s the core difference in my approach. I’m not looking to manufacture 8-12% annual returns from stocks grinding sideways. I’m looking for names capable of delivering three, five or even 10 times the original investment when the setup is right and the wave structure confirms.
But they don’t all work. Some positions get ugly — Planet Labs PBC (PL) is an example for me. I got in at $35 back in May and now it’s under $15, so I have some work to do to repair it.
A compelling target is never a guarantee, and a coin-flip setup means accepting that some trades will disappoint or require adjustments.
That’s why the combination matters: Explosive upside, controlled position size, patience and realistic expectations. When the possible reward is several times the capital at risk, I’ll accept lower odds — but I’ll never ignore the risk.
That’s why I chase the ones I chase.
Jeffry Turnmire
Jeffry Turnmire Trading
I host my Morning Monster livestream at 9:15 a.m. ET each weekday on YouTube, and then 30 Minutes of Awesome at 5 p.m. ET each Tuesday!
Please check out my channel and hit that Subscribe button!
You can also follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
- Telegram:https://t.me/+6TdDE7-F6GlhMmJh
Important Note: No one from the ProsperityPub team or Jeffry Turnmire Trading will ever message you directly on Telegram.
I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.
I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. 1 PM ET Live: I’m Opening Up My Most Consistent Daily Trade to Date
If you won’t mind a trade that’s gone 220 consecutive times without a loss…
Then join me at 1 p.m. ET today as I show you the setup behind this trade… and how to join me for the next one today!
