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Home › Forums › Open Trades › Breakout in SHOP
This is one of the better momentum stocks setting up for a great 2017. What I want to do is try to buy enough time on some calls so if it does manage to run then I can hold on for dear life… this is a convexity trade, meaning I’m looking for a large amount of upside and a parabolic blowoff move.
Here’s the trade:
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
BTO | SHOP | 21 APR 17 | 50 | Call |
Total Debit: | 3.6 |
Will buy another round at 2.80 and look to average out. Will sell half at $50 per share and hold the rest through earnings.
Assuming full risk here– no stops as I don’t want to worry about shakeouts.
Going to roll these calls higher to take profits on the trade and try to hold on for further upside. This one smells like it’s going to go parabolic.
So you’re selling to close the Apr 50 call, and buying to open the Apr 60 call. You move strikes up 10 points and you capture about 5 bucks in a credit.
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
STC | SHOP | 21 Apr 17 | 50 | Call |
BTO | SHOP | 21 Apr 17 | 60 | Call |
Total Credit: | 4.9 |