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How Jack Traded BBAI Stock

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 2/6/2025 4 min read
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This is one of the best plays we’ve seen in a while.

On Wednesday, February 5, BigBear.ai Inc. (NYSE: BBAI) announced that it won a Department of Defense contract to prototype an adversary geopolitical risk analysis for the Chief Digital and Artificial Intelligence Office (CDAO).

When the news was announced, BBAI share prices were trading at $5.20 …

Government contracts are great catalysts for penny stocks. And this is an AI related government catalyst.

That’s not all … The stock immediately spiked past 52-week highs. That means there was a lack of bagholders to sell into the spike.

Take a look at the multi-month chart of BBAI below. Every candle represents one trading day:

BBAI stock chart
BBAI chart multi-month, 1-day candles Source: StocksToTrade

Yesterday was just day one … We’re bound to see more intraday volatility from this stock over the next few days and weeks.

We can trade that volatility using popular patterns.

One of my most successful students, Jack Kellogg, traded this stock on day one. He even alerted it for all of the trading students in the chat!

Since 2018, Jack has profited a total of $15.2 million from the stock market (including losses).

And thanks to this 2025 AI market, he’s on fire right now! 📈🔥

How Jack Traded BBAI

© Millionaire Media, LLC

Jack was watching this stock before BBAI announced its Department of Defense contract.

Jack didn’t know the announcement was coming. He can’t see the future 😆

But, looking at the chart from Jack’s perspective a day before the announcement … This was already a volatile AI stock that was trading just under a 52-week breakout level.

The 52-week breakout level is important because we theorize that anyone who bought shares above the current price level likely isn’t bag holding, unless they bought shares within a year of the current trading price.

A lot of people go through their portfolios at least once a year and get rid of any dead weight, hence the 52-week cut off.

Here’s what Jack was looking at. On the chart below, every candle represents one trading day:

BBAI stock chart trade with annotations
BBAI chart multi-month, 1-day candles Source: StocksToTrade

Once the stock breaks above the 52-week level, there’s significantly less chance of any selling pressure to stop the spike.

We can see that people bought above the current 52-week level, but that was in February of 2023. Two years ago instead of one. Anyone who bought at those highs likely would have sold for a nasty loss within the next 52 weeks.

Intraday Price Action

Intraday, a day before the Department of Defense announcement, the stock was spiking toward the 52-week highs, set at $5.20.

Jack bought shares in the afternoon above a major support level at $4.80.

Take a look at the post on X below:

My students and I are always looking for the hottest stocks in the market.

BBAI was a no-brainer thanks to its low price, monthly chart, and AI government catalyst.

We’re also always looking for key support/resistance levels to make sure that we get the best entries on these massive stock spikes.

There’s a science to this …

Get Jack’s next trade alert!

And keep an eye on BBAI the rest of this week. We’re sure to see more intraday volatility thanks to this catalyst.

Cheers.

 

*Past performance does not indicate future results

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”