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PEAD in WFM

Home › Forums › Swing Trades › PEAD in WFM

  • This topic has 2 replies, 1 voice, and was last updated 7 years, 5 months ago by Steven Place.
Viewing 3 posts - 1 through 3 (of 3 total)
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  • December 29, 2014 at 10:07 am #2323
    Steven Place
    Keymaster

    After a solid breakout on good earnings, Whole Foods has basically done nothing for the past month and a half.

    wfm

    I expect that to change. Volatility cannot compress for this long without finally seeing some expansion. And because the rend is up, most likely the expansion will happen to the upside.

    Here’s the trade:

    Buy to open WFM Feb 50 calls at 1.60 or lower.

    Close for a loss at a loss of 47.. use 46.84 as a hard stop to reduce stop-run risk.

    Scale half at 51.

    December 30, 2014 at 10:12 am #2325
    Steven Place
    Keymaster

    50.94 was hit, that’s close enough to 51 to sell half and reduce risk.

    Sell to close half WFM Feb 50 calls at 2.50 or higher.

    February 4, 2015 at 11:33 am #2324
    Steven Place
    Keymaster

    Going to cut the rest loose here… WFM has earnings next week, there’s chatter that Ackman’s getting short, it’s coming into resistance at 55 and it’s getting a touch overbought.

    wfm

    Sell to close WFM Feb 50 calls @ 4.60

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