<\/a><\/p>\nThis is an earnings catalyst play.<\/p>\n
We have the combination of two things. First, the fundamentals are solid. The company had a “beat\/beat\/raise” event, where they beat on revenue and earnings, while raising forward guidance.<\/p>\n
Second, we have a clear technical breakout from a multimonth base. While there are some resistance levels to contend with in the 90’s, it’s a very high odds trade that SWKS does not fill this gap anytime soon.<\/p>\n
This will be a slightly different setup. First, because March options opened yet, I don’t yet know the actual pricing for the spreads. I’m using theoretical pricing to figure out the expected value of the spreads. Second, this will have a stop baked into the trade.<\/p>\n
Trade Setup<\/strong><\/p>\nExpected Price: 88<\/p>\n
Sell to Open SWKS Mar 80\/75 Put Spread<\/strong><\/p>\nTier 1: Open at .90, Close at 0.20<\/p>\n
Tier 2: Open at 1.20, Close at 0.90<\/p>\n
No Tier 3<\/p>\n
Extra Risk Management: On a close under 78.18, exit the trade for a loss.<\/p>\n
REMEMBER: These prices are not yet confirmed by the market. Look to see how it plays out on Monday and make a decision from there.<\/p>\n","protected":false},"excerpt":{"rendered":"
Another week, another round of volatility compression. Eventually, this has to give. Markets rarely stay this quiet for this long. If you’re looking for a catalyst, well, we’re headed hot into earnings season. We’ve already seen large cap financials get taken down a peg as the expectations baked into the stock were too great. Since […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":""},"categories":[24],"tags":[],"_links":{"self":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7446"}],"collection":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/comments?post=7446"}],"version-history":[{"count":1,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7446\/revisions"}],"predecessor-version":[{"id":7450,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/posts\/7446\/revisions\/7450"}],"wp:attachment":[{"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/media?parent=7446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/categories?post=7446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trades.iwopremium.com\/wp-json\/wp\/v2\/tags?post=7446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}