Before - Feb. 7 Expiry. Call Credit Spread. 1/3 Strikes. Credit of $0.75. Risk $125. Reward $75
After - Feb. 14 Expiry. Call Credit Spread. 1/3 Strikes. Credit of $0.87. Risk $125. Reward $87
Either strategy POP – 85.5%
While the Risk/Reward is not 1:1 or better (as preferred), sometimes these higher probability trades means giving more risk for higher probability of success.
I will place an order for this trade Monday. I will update if trade is entered (filled).
Recently filled gap, but is not finished.
My opinion – Downtrend in control means lower gaps filled unless white broken. Stop at $2.
Gap to fill at $0.34 may not get filled, but price should head towards $0.90 gap fill.
Under $1 for long enough and de-listing may cause FOMO causing price to head back up towards $3.50 gap.
entry until downtrend is broken or gaps are filled.
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I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
Website will be ready for launch mid-January 2020.
Disclosure - I am long BTCUSD , GBTC . Short term GDX , SPXS , MCD
I am NOT shorting ACB. The idea is a SHORT IDEA.
The trade mentioned is a DEFINED RISK trade. I also bought NIO at IPO and 2x'd. NIO went from $12 to $1, so 90% loss is a good entry point LOL
I am not persuaded by others to buy when they say sell. I use technical and fundamental analysis to make MY OWN opinion.
Not based on emotion or others.
If you are holding stock on ACB, you have an UNDEFINED risk trade (although it's defined in the way ACB can go to zero).
Options credit spreads are defined risk trades based on time.
If you are holding stock, and want to offset your losses WHILE maintaining your bullish position.....then the credit spread above would HEDGE against your losses.
You make money going down. You keep stock in case it goes up.
Or....you can just hold stock...hoping it goes up with your "theory"....while you watch your account bleed. Just my opinion.
Don't get me wrong but to post short bearish entry idea after it allready happened will not help other traders. I am using my own technic witch including Elliot Wave theory and it's telling me to buy here. I started to buying ACB last week and I bought it even today morning because I believe it's huge opportunity. That all. Wish you all the best .Thanks for response.
That would be like telling people AAPL at $250 is over because its already bullish.....when it hits ATH's every other day pushing $300.
I don't disagree with your "belief". I just think it qualifies some other price point, moving average, earnings, cash flow, or other information than "big opportunity".
Elliott waves don't always reach a wave count either. Best to use multiple things and cross reference IMO.
Thank you as well. :)
I would personally prefer a break of the 10WeekMA at $2.40 to enter long, but that seems far off.
If ACB gets past the $2.40 10WeekMA, then you should get your $3.40 gap fill going up. This is what I wait for.
I can enter here....and wait....OR set an alert for the 10Week to break and know I have 29% upside to the gap fill. :)
I'm not marrying the girl. I'm just parking her car.
Just my two cents at an attempt to help you increase your own profit method, or reduce losses.
When Heikin Ashi gives us a Buy indicator on the Weekly....we will be in the same boat going up :)