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Home › Forums › Swing Trades › Parabolic short in V
Very, very strong move in Visa. This is on the back of a great earnings report so I do expect this to trade higher… but not this high, this fast.
Today’s move is the equivalent of the move that we saw the day after earnings. This is stretched and overbought on a short term basis, and will need some sideways action to work off its overbought pattern.
Here’s the trade I like… I want to be VERY PICKY with what fills I get, because odds are this will squeeze up to prices I like.
Sell to open V 265/270 bear call spread at .70 HALF SIZE
ADD to the trade at 1.20
OUT at 0.35, with option to re-sell at higher prices.
Floating bids to close these spreads at .35
Go ahead an set some bids to close the V bear call spread:
Buy to close Dec 265/270 call spread @0.35
The options board is not that liquid right now, and the bid/ask spread is wide. But if V drops just a touch more, the market makers will fill your trade.