Home › Forums › Closed Trades › Magnet Trade in WYNN
- This topic has 4 replies, 1 voice, and was last updated 6 years, 8 months ago by Steven Place.
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August 3, 2016 at 10:45 am #6641Steven PlaceKeymaster
Setup: Magnet Trade/2b Reversal
Price: 30 min close under 96
Description:
The stock broke out of a large range, but saw a gap down on earnings. This kind of price action reeks of “disappointment” for anyone that was looking for the breakout.
When we see a failed break, price will most times auction to the other end of the range, which is right around 90.
I’m looking for a 30 min close under 96, then I’ll be picking up the Sep 90 puts.
Stop on 30 min close above 98.
Attachments:
You must be logged in to view attached files.August 24, 2016 at 10:18 am #6815Steven PlaceKeymasterWe had our breakdown, here is the trade:
IWO Premium Order Ticket Type Asset Duration Strike C/P BTO WYNN 21 Oct 16 95 Put STO WYNN 21 Oct 16 90 Put Total Debit: 2.28 The stock is down 7 days in a row, so odds of reversion are high. I’d recommend scaling in, starting half size at 2.30 then adding at 1.90
A daily close back above 100 gets me out of the trade.
- This reply was modified 6 years, 9 months ago by Steven Place.
August 26, 2016 at 9:43 am #6826Steven PlaceKeymasterTrade is working out really well here, but it is getting quite oversold. It’s down 9 days in a row and is now 3 conseuctive days under its lower Bollinger band.
I’m going to adopt a slightly neutral stance here by converting this into a condor.
Here’s the adjustment:
IWO Premium Order Ticket Type Asset Duration Strike C/P STO WYNN 21 Oct 16 80 Put BTO WYNN 21 Oct 16 75 Put Total Credit: 0.98 - This reply was modified 6 years, 9 months ago by Steven Place.
August 26, 2016 at 9:46 am #6828Steven PlaceKeymasterThis is what the trade looks like after the adjustment:
September 23, 2016 at 10:40 am #7008Steven PlaceKeymasterDefinitely let this one get away from me. While the overall market was weak, the stock ripped on good Macau numbers.
I’m going to bail here for a small loss and stalk it to the long side.
Because we have a combination of a bear put spread and a bull put spread, we’re going to use a put condor order to close the trade.
IWO Premium Order Ticket Type Asset Duration Strike C/P STC WYNN 21 Oct 16 95 Put BTC WYNN 21 Oct 16 90 Put BTC WYNN 21 Oct 16 80 Put STC WYNN 21 Oct 16 75 Put Total Debit: 1.11 -
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