Retracement Short in GOOGL

[Steven Place]

GOOGL has seen some great movement after failing to breakdown, but the countertrend rally has been hard and fast… and it needs a breather.

Here’s the trade I like:

Sell to open Jan 560/565 bear call spread @0.80 HALF SIZE

Add to it at 1.50

Stop out of full position on a close above 560.

I think GOOGL is going to cool its heels going into the end of year, and maybe see some back and fill– that’s why I think bear call spreads are a good idea.

[Steven Place]

As expected, GOOGL pulled back off of this resistance area, and we can now close the trade for good profits.

Buy to close GOOGL Jan 560/565 bear call spread for 0.20.

You may have to work your bid up to .25 but that’s still a good fill.

This is NOT a trade I want to re-enter, because if GOOGL retests 535 again it will pop and run into the 550’s. If it gets there, then I will consider an iron condor trade.

[Author]

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