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Home › Forums › Closed Trades › J-Hook / Magnet Setup in APA
Setup: J-Hook/Magnet Trade
Price: 30 min close above 53.13
Description: After breaking its downtrend on Aug 16th, the stock had a massive run to just under 54. Since then it’s been consolidating for about two weeks. This has the look of a “j-hook” pattern and if it gets further strength, the 58 level will act as a magnet
The Oct 55 calls straight up are a good bet on a 30 min close above 53.13. Stops are TBD, but under 52 looks about right.
Ok that level was hit and rejected, if it clears it in the next few days I’ll be a buyer.
Here’s the setup more specifically:
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
BTO | APA | 21 Oct 16 | 55 | Call |
Total Debit: | 1.7 |
1.70 sounds about right for the option price, but I’ll be keying off that stock price level.
Breakout failed, and the stok is gapping under our stop loss level. Closing for a loss:
IWO Premium Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
STC | APA | 21 Oct 16 | 55 | Call |
Total Credit: | 1.08 |