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Breakout Trade in WHR

Home › Forums › Swing Trades › Breakout Trade in WHR

  • This topic has 0 replies, 1 voice, and was last updated 12 years, 9 months ago by Steven Place.
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  • September 12, 2013 at 12:28 pm #2606
    Steven Place
    Keymaster

    WHR is a relative strength breakout play, with a broadening triangle pattern and a key level right around 136.

    whr

     

    On a move above these levels, consider buying a call spread with a stop under 132.50 — that stop is chosen as it coincides with major moving averages, as well as it’s the low from a bullish daily candle.

    whr-riskIf WHR rallies in the next few weeks but becomes overbought, you can then sell a 145/150 call spread against, which would adjust your position into a call butterfly. You could also consider selling the Oct 140 call and rolling it to the Dec 145 call, which would then create a calendar– locking in risk and increasing theta.

     

     

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