Trade Opportunity Case Study of the Week: HIMS Oops Reversal – | May, 2025

The Trade Opportunity

The purpose of this weekly article is to analyze the top trading opportunity of the past week. This is to improve our identification and execution of high quality trade ideas that meet our setup requirements.

Each article will focus on a stock that meets one of three of the main categories of setups I trade:

• Range Breakout / VCP / tight area breakout
• Pullback to Support/ Key moving average
• Gapper / Post Gap Setup

These articles are like taking a step into the batting cage and loading up a historical at bat from an Ace pitcher in the world series – they will help you prepare and execute in future situations by studying important moments from the past.

The setups we cover will appear again and again in each market cycle

So far we have covered these case studies:
Previous article covering the BE Day 1 Gapper Setup
Previous article covering the AI Day 3 Gapper Setup
Previous article covering the DOCS Post Gap Range Breakout Setup
Previous article covering the ALAB Range Breakout Setup
Previous article covering the NVCR Range Breakout Setup
Previous Article on QMCO Range Breakouts
Previous Article on CRNC Episodic Pivot
Previous Article on VST 10 EMA Pullback
Previous Article on HIMS Range Breakout
Previous Article on TEM Opening Range Breakout
Previous Article on U Gapper Day 1 Setup
Previous Article on Okta Earnings Gapper
Previous Article on QBTS Catalyst Gapper
Previous Article on CELH Inside Day Breakout
Previous Article on SQQQ Oops Reversal

Previous Article on the CRWD Oops Reversal
Previous Article on the TTAN Range Breakout
Previous Article on the PLTR 21ema Pullback
Previous Article on HIMS Post Gap Range Breakout

I also have the following Educational Articles which expand more on Setups/Entry Tactics. I will be doing one on the positive expectation breaker entry tactic soon.
Oops Reversal Entry Tactic

Please let me know in the comments what other topics you would like me to write about.

This past week we consolidated below a key level and the 200sma

Here are a few names worth studying from the past week

PONY Range Breakout

SEDG Range Breakout after the gap

DAVE Gapper and Day 2 follow through

SEZL Gapper and Day 2 follow through

GRPN Gap and Go

LYFT gap and go

TEM Upside reversal after earnings

Today however we will once again be focusing on HIMS which presented an Oops reversal after earnings

Discovery

How would you get HIMS on your radar?

To trade HIMS you first need to get it on your radar. HIMS should likely be on your larger universe list since it is one of the leaders of the weight Loss theme and made a strong run into the end of last year which I covered in the Trade Lab.

You could also have identified HIMS as a stock in play being that it is a high momentum name currently and had earnings as a catalyst.

There are only certain days where stocks can make a powerful move

• After a Catalyst like Earnings
• From a tight contraction
• After being significantly oversold

HIMS Has also been featured quite a bit in the Trade Lab as of late

Setup and Execution

The setup for HIMS was base breakout/catalyst mover and the entry tactic was an oops reversal.

On earnings HIMS reported a EPS surprise of 67% and 300% EPS growth

An oops reversal occurs where we are gapping down below the prior day’s low and rally back through it. It suggests the street is getting caught on the wrong side and often leads to a strong easy to manage risk entry point especially when there is confluence at the low like a moving average.

In this case HIMS was gapping down to a base pivot level which also lined up with S2.

HIMS immediately showed demand off the open. Risking versus the LOD on the oops reversal pivot would have been 4% stop loss. This would enable up to a 15% position if risking 0.6% of portfolio equity.

By the end of the day you would have had over a 20% cushion.

Swing/day traders would be taking some off into strength while trailing a partial for a bigger move

Into the end of the week HIMS continued to act well. Swing traders would be looking to sell some more into strength on another expansion or on a negative break off the 10ema.