I am in Atlanta on a small laptop, so no video with this trade alert.
We’re taking a look at NEM. This is having a clean pullback to the rising 50 day moving average.
This is the first pullback after its parabolic run about a month ago, and it’s a level I’ve been focusing on for a while now.
Looking at a different chart, there are some other key levels coming into play just underneath the current price of the stock.
The trade we are looking at is a bull put spread, also known as a put credit spread:
We have three tiers total, that means if NEM continues to move lower, add more size at a higher credit. We do this because we don’t know where the short term low will be, and it helps to reduce psychological pressure compared to going “all in.”
If NEM closes under 64.89, then close the trade at a loss.
Update: June 10th, 2021
Closing the trade out for a profit.