Home › Forums › Closed Trades › PB2MA in COST
- This topic has 5 replies, 1 voice, and was last updated 6 years, 8 months ago by Steven Place.
-
AuthorPosts
-
July 25, 2016 at 9:23 am #6538Steven PlaceKeymaster
Setup: PB2MA
Price: 163, could change
Description:
Simple idea here. It had a massive move just a month ago, and has been in a range every since. I want to see a good stop run and have it run into the 20 day moving average.
Into that, I’ll be selling the Sep 160/155 bull put spread, probably for .80 – .90 depending on where price ends up. Scaling in at 1.20 and 1.70.
Stop out on a close under 160
Attachments:
You must be logged in to view attached files.August 2, 2016 at 11:10 am #6625Steven PlaceKeymasterOk this setup has changed a little bit, it’s now a 2b reversal setup. It hasn’t triggered yet, but I’d like to give you the full details on the trade:
Ok so here goes… this is a 30 min timeframe on the stock and it’s had a clear support level since the beginning of July.
We’ve broken underneath that level in what feels like a stop run.
Here’s how the trade plays out.
If price gets back above the breakdown bar’s high, that’s the entry signal.
So the breakdown bar on a 30 min chart is 165.72. So at 165.73, that’s a good entry.
The trade I’ll be playing is the Sep 170 Calls, straight up, with intent to turn it into a bull call spread.
The stop will be twice the range of the entry and the pivot low.
So with an entry at 165.73 and the range low potentially at 164.59, that gives us a range of 1.14.
Twice that is 2.28, off of the entry at 165.73 so that’s 163.45 hard stop.
Keep in mind, this only works if the actual trigger happens. We could just as easily see the stock fall apart which is why we are waiting for confirmation first.
Here’s a detailed setup:
August 3, 2016 at 9:36 am #6638Steven PlaceKeymasterTrade triggered:
IWO Premium Order Ticket Type Asset Duration Strike C/P BTO COST Sep 170 Call Total Debit: 1.6 - This reply was modified 6 years, 10 months ago by Steven Place.
August 4, 2016 at 9:43 am #6672Steven PlaceKeymasterOur upside target is hit, time to sell some calls against the position:
IWO Premium Order Ticket Type Asset Duration Strike C/P STO COST Sep 175 Call Total Debit: 0.7 August 25, 2016 at 3:11 pm #6824Steven PlaceKeymasterGoing to place an order to buy back the Sep 175 call @0.10
September 23, 2016 at 10:35 am #7007Steven PlaceKeymasterThis expired worthless.
Initial entry at 1.60,
Spread half at 0.70
Net loss is 0.90
-56% return on risk
-
AuthorPosts
- You must be logged in to reply to this topic.