I’ve been waiting for this setup for a month.
This is a “FBF” pattern. Failed-Breakout-Failure
The stock cleared a huge level at 125. Instead of chasing the breakout, I’ve been waiting for the stock to come back sub 125. Why? Because what will happen here is that anyone who bought the breakout will now need to consider where their stops are.
So into the 125 stop run, it will be time to start looking for support levels. 123 makes the most sense… it’s where the 50 day moving average is, as well as a gap fill support level.
Simple bet is to buy the Jun 120 calls into those support levels.