Setup: Parabolic Short
The stock is over 50% above the 50 day moving average. I think that it can continue to get more overbought here, but we’re coming to a point where it makes sense to start shorting.
I think shorting at this price is good, if you scale in. Ideally we’re looking for some kind of failed move higher… failed gap up, reversal candlestick… but if you want to layer into a short position then that’s a good bet.
Now I think if you can stomach the risk and have the margin, selling the Aug 30 call @.50 is a good bet.
However this is the more sane idea:
|Full Time Profits Order Ticket|
|BTO||X||16 Sep 16||28||Put|
|STO||X||16 Sep 16||25||Put|