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Home › Forums › Swing Trades › Breakout in GOOGL
Combination of a few “patterns” here.
It had a failed breakout under 500 back in January, so that’s where sellers lost control. It then had a massive rip up to 545 before pulling back aggressively into earnings.
Earnings weren’t terrible and 545 was attempted again. It’s been consolidating for about 2 weeks now and i think 545 will act as a magnet, most likely breaking out from there.
Here’s the trade:
Buy to open GOOGL Mar 540/570 bull call spread for 7.80
Stop 520
Remember… best place to ask questions is in the chat.
First target of 550 has been hit (technically 549.50 but that’s close enough), it’s time to scale out of this trade.
Sell to close HALF SIZE GOOGL Mar 540/570 call spread @ 13.50
If you don’t have enough size to scale out, then consider simply rolling the 540 call up to the 550 call, that will reduce your directional exposure.
GOOGL is making a new higher high… and I’m going to take profits on the rest here.
Here’s why:
1. Trendline resistance.
2. 200 day moving average resistance
3. 3 Days in a row higher
4. Price into upper bollinger band
5. Stock still not in a proper uptrend, so there’s still work to be done.
6. A statistically normal pullback here would wipe out a good amount of gains
So I want to close here, and if GOOGL dips I will re-buy the spreads.
Sell to close GOOGL Mar 540/570 call spreads for 16.70 or higher.