This topic contains 2 replies, has 1 voice, and was last updated by 
-
Posts
-
LOW at 195.11
I’m looking at a possible trend change play here. So far we’ve seen lower lows and lower highs.
Today, MACD crossed bullish but still under 0 line and PSAR Reversal triggered long. This can all change if we see a close under recent low.
I’m going with a simple InOut spread, one leg ITM and one leg OTM. I want to pay as close to 50% of the width of the spread as possible.
I’m doing a 10 point wide spread and want to pay as close to 5.00 as possible.
This trade has about 50% implied probability of profit. Size accordingly.
Chart:
Risk Profile:
Order Ticket:
LOW at 191
We have 25 days until expiry. I am going to roll my long call up and out to 02DEC 200 strike, converting this call debit spread into a call calendar spread.
The best case we drift towards 200 level over the next 3 weeks.
The credit for this adjustment is going to reduce risk in this trade from 5.20 to 1.80
Risk Profile:
Order Ticket:
LOW at 216.07
We have 2 days until expiry and this stock is moving away from the profit tent. I’m going to take this trade off for a small loss.
Order Ticket:
You must be logged in to reply to this topic.