Weekly Pick: CPS
Clean setup in a volatile tape
A lot of bullish setups right now either look extended or need more time to repair. CPS stands out because it sits in a location where the risk is defined and the potential move does not require heroics. I don’t need a narrative. I need a clean setup and a reaction.
This is the type of stock I can trade multiple times over long time frames on measured pullbacks.
Cooper-Standard Holdings Inc
Cooper-Standard manufactures sealing and fluid handling systems for the global auto industry. Not a story stock. Not an AI theme. Not a macro trade. It’s an industrial cyclical quietly repairing its business while the stock structure improves ahead of the fundamentals.
Fundamentals and Ownership
This is not a hype name and that’s part of the appeal.
Market cap $610M.
Current p/e 19.05 | Forwards p/e 13.71
Institutions have 67% of the float and they’re slowly adding.
Insiders have 5% of the float.
Modest daily volume and 4%+ intraday swings are common.
Technicals
Full bull structure on all time frames.
On the Daily it’s breaking out of a long wedge.
On the Weekly it’s moving off support following a pullback from a multi-year high.
On the Monthly it’s moving off a bullish EMA stack following a deep pullback and multi-year bottoming pattern.
Daily
Weekly
Monthly
Why I Like It
This fits a specific type of setup I trade repeatedly: lower and mid-range IV stocks with improving structure.
These tend not to explode immediately. Instead they produce short directional moves that reprice the options much faster than the stock moves and that’s where I’m extracting returns.
Risks
No trade is safe.
The primary risk is simple: failure to hold the rising support line. If the stock loses structure and accepts below support, the thesis is invalid.
Other risks:
cyclicals can stall
the stock may drift sideways
a breakout could take longer than my time horizon
How I’m Trading It
I’m positioning with shares and Apr $35 calls. Options spreads are mediocre so getting a solid execution on calls will matter and I’ll be patient.
My goal is not to hold for months.
If I get a quick 20–40% options move, I’ll monetize it. I may re-enter later if the setup repeats. I frequently trade the same name multiple times as long as the structure remains intact. The first 20% is usually much easier than the next leg up and I’m quick to take the first move and recycle to cash on my options, particularly when the market is as volatile as it’s been lately.
$31 is my reload / add zone. If it drops below $29.50 I’ll be watching for downside continuation on volume, and I’ll sell and watch.
I trade what I post.
Weekly Picks and occasional Trade Notes for subscribers.
This isn’t an alert service, and I’m not your financial advisor.
Just sharing the trades I take. Putting it out in public keeps me disciplined.
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