NYSE:AA Alcoa Corporation
AA forming a which is usually . I set an alert to let me know if it breaks down out of the . If it breaks down, it'll first "hook" down and up quickly to confirm resistance and try to rise again. If it fails, it will "go" quickly downward to the next at ~25$ for a 33% gain on a short, more for a put option. Once it finds support and begins to reverse upward, there's a chance for a 64% gain on it's way to $37 (more for a call option).
Profit on the put, or downswing, was a little off if you actually buy it when it confirms the downtrend at around $33. The profit would actually be around 28%.
AA tried breaking up out of the rising wedge but failed. It then gapped down and had a high volume red candle. Today is verifying the movement but since I'm a little cautious in this current market, I may wait one more day for verification of a downtrend.
Trade closed: target reached:
AA didn't drop as far as I thought it would. It hit $31 and bounced back up. Congrats if you profited both on a Put and a Call on its way back up to $41!