AbbVie Inc - Long Call Vertical SpreadQuick trade for monday on $ABBV
Breakout formation
1) Swing Pivot
Last swing pivot breaked at 109$
2) RSI in the middle zone
Many space up and down too.
3) Squeeze indicator
On my squeeze indicator "prepare for storm" sign.
This in dicator I'm using for predicting any significant move in near future.
See examples in the past.
CONCLUSION
LONG CALL VERTICAL AbbView Inc
Max profit: 120$
Probability of Profit: 64%
Profit Target relative to my Buying Power: 31%
Buy Power: $380 ( max loss without management)
Max loss with my risk management: ~ $140
Tasty IVR: 6.9
Expiry: 66days
Buy 1 ABBV May21' 100 Call
Sell 1 ABBV May21' 105 Call
Debit call spread for 3.8 debit
Stop/my risk management: Closing immediately if daily candle is closing below $103.8
Take profit strategy: I'm taking at the 55% of max.profit in this case with auto sell order. (at 3.85 credit)
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Optionstrade
Using VXX as VIX alternative with good P/L
Yesterday I've played an alternative VIX instrument.
I've tired to searching good ROI or P/L rates at VIX $20 VIX support, so I've searched some alternative, but VIX related instrument.
Lets see what can give us this BARCLAYS BANK VIX Short ETN (=VXX)
(1) Yearly support + incoming buy volume
The lowerst value of the previous year was $13.
In the past month significant buy volume arrieved.
Combined this two reason could lead into sidewalking or bounceback from this level.
VXX is a Trust, so we see volume displayed (unlinke in the case of the VIX)
(2) VIX play ROI vs VXX ROI
You could see VXX like an ETN alternatative of the VIX.
Same dates for big edges, and melting down between the big edges.
Compared this two instument's ROI: the conclusion is obvious.
VXX ROI at support $13 for April with vertical spread: 37/63 = 58%
VIX ROI at support $20 for April with vertical spread: 20/80 = 25%
CONCLUSION
I'm buying a few call spreads for April, because the IVR not so high.
I think this is a very good P/L rate with a very high probability of profit!
Target: ............. 52% Max profit: ...... $111 Max loss: ......... $189 IVR: ................... 20 POP: .................. 65% Expiry: .............. 44days
Strategy: long call vertical spread (average IVR)
Sell 3 VXX April 16' $13 call Buy 3 VXX April 16' $12 call
Stop: Closing immediately if daily candle is closing below $13.
Take profit strategy: I'm taking at the 65% of max.profit in this case.
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MRK broke out from downtrend on an uptrendBroke out from bearish trend that started on 12 Jan currently on an uptrend. Will be retesting previous support levels of 78-79$.
Once that level is reached possible boring sideways trading until we retest previous levels of 83-84$.
Keep it on your watchlist.
PLTR forming a falling wedge upside to 30$Currently PLTR forming a falling wedge with a strong support of 24$ will bounce back to 27$ and 30$ later on.
$TSLA Quadruple Top Shorting Made easyThis is by no means investment advice!!! Please do your own research.
TESLA (TSLA) PUT Entry 19th Feb 2021 Expiration date
Entry cost: $780.00 (net debit) see details
Maximum risk: $780.00 at a price of $298.00 at expiry
Maximum return: $58,819.80 at a price of $0.00 at expiry
Breakevens at expiry: $294.10
1. Trades to open positionNo Price Total
Buy 19th Feb 2021 $298 Put 2x100 $3.90 $-780.00
sell 19th Feb 2021 $298 Put 2x100 $13.82 $2764.00
Total PNL
+$1984.00
2. Trades to open positionNo Price Total
Buy 19th Feb 2021 $298 Put 2x100 $3.90 $-780.00
SELL 19th Feb 2021 $298 Put 2x100 $54.04 $10808.00
Total PNL +$10,028.00
let me know your opinions.
NIO coiled to test $12+ again?In the final week of January, NIO (NIO) announced the offering of $650 million convertible five-year bond to raise funds and utilize the funds “to pay the costs of the capped call transactions.” The bond offering closed on February 4. Tencent Holdings (TCEHY) purchased $30 million worth of its proposed offering, while Hillhouse Capital Management purchased $5 million of its proposed offering. Existing large investors’ continued confidence in NIO drove its stock higher in the next few sessions.
Key factors in February that caused NIO to rise over 20% include:
On February 20, NIO pleased investors by stating that it has been ranked fifth on Fast Company’s list of China’s most innovative companies for 2019.
On February 24, CBS broadcasted an interview with William Li—NIO’s founder and CEO. During the interview, Li tried to project NIO as a lifestyle company—different from Tesla (TSLA). These factors likely boosted investors’ sentiments in last month.
TSLA 's CEO, Elon Musk, was held in contempt of court for his Twitter behavior and continues to put the company in hot water with the SEC: www.cnn.com
Productive USA-China talks to reach a trade deal.
With that said, I believe the risk:reward is there on either April $8 or $10 calls to hold over earnings for possible move back up towards the all-time high. Max risk will be defined ahead of times so no stop loss will be needed.
We will float an order out there for April $10 calls at $1. IF it does not fill by market close tomorrow, I will adjust the order to get filled ahead of earnings.
CGC at a resistance and weekly looks like a bull flagGoing to setup a trade using April $47.5 calls stop-limit $4.25 (tweezer top at $4.20 on the options) with a $1 stop. Risking $100 per contract.
Upper targets low to mid $50 range. Only concern is that the gap from the last two days has no been filled, but let's see if the sellers jumping on at this resistance get squeezed up.
Cheers!
AMZN ready to push back towards $1700 and beyondWhile the SPY is fighting $280 resistance, AMZN has been making higher lows inside its major down channel. A break towards 1672 then 1723 (5% move from the closing price of today and the 200 day sma) looks to be in the cards as long as the overall market can break through 2800 on ES and hold. I also like that the daily has closed well above the daily 9 day exponential moving average.
A bigger move in the market place is definitely in the cards in the next 2-3 days with the USA-China trade agreement extended deadline from this Friday, March 1. Also Trump meeting with North Korea's leader, Kim Jong Un, to discuss denuclearization. A USA-China trade deal, or even a peace agreement with North Korea could launch this market much higher.
Purchased April $1640 calls with a $10 stop based on the weekly and daily price action. Risking $1k (per contract) of house money to make $5k (per contract)+.
Let's see what happens in the next few days :-).
As always let price discovery be your guide.
ABC is at a strong downtrend line resistanceA lot of volume came in on Friday closing as a doji at major resistance. Shorts are most likely hopping on board here. Going down to the 4H you can see there is an ascending triangle.
My plan is to enter above February 7th's high with March $85 calls. Should be a strong momentum move to the upside if volume moves in on a breakout of the downtrend line.
Let's see what she does this week :-).
SQ coiled ready to pop to $80+ ahead of earningsSQ at a major trendline resistance area from the ATH. People jumped on board short yesterday as you can see the increase in volume and a bearish looking candle.
My plan is take the break of that bearish candle of yesterday with a target of $86 area with March $75 calls stoplimit $5.70 with a stop at $4.50-.60. Not risking more than $250.
As always let price discovery be your guide :-).