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Home › Forums › Swing Trades › Swing Long on the BA Breakout
Potential compression breakout in BA. Measured move gives us a target of around 112.50.
Now there is some news risk around BA, as it is a defense contractor, so Syrian intervention by the US Gov’t may prove fruitful – although the past 6 month runup may already have investors anticipating that move.
I think you can buy calls straight up but a slightly clever way to play this would be through a bull call spread:
So the good thing about bull call spreads is:
If the stock loses 102.50 then I would look to exit the trade– but if it pulls into 103 then I would buy back the 115 call and leave the 105 call on.
BA broke out and has greatly surpassed expected targets. This has gone a bit parabolic, and the way we structured our risk, we are near max profit with around a month left. This is where you should reduce position and trail a stop.