APA had a quick drop to this $70-78 consolidation range after a 104.57 top on 7/31. A lot of room to go lower below the 10/15 low ($68.29). I got filled on one (delta 0.63) JAN15 75 Puts for $5.00. I don't have any idea what the company does (don't care), just looking at the chart.
Risk - sell stop when underlying stock price is above $78.65. If that is not ever filled, adding a 30 day time stop to get out. Time stops are good for straight bought options because that can turn into a pretty large theta decay loser if it doesn't go up or down.
Target- A double? Using a trail stop method in it's infancy.
Disclaimer: This is also a trade for me to get my cash portfolio delta lower. May not be your cup of tea for your situation.
-Kevin
Risk - sell stop when underlying stock price is above $78.65. If that is not ever filled, adding a 30 day time stop to get out. Time stops are good for straight bought options because that can turn into a pretty large theta decay loser if it doesn't go up or down.
Target- A double? Using a trail stop method in it's infancy.
Disclaimer: This is also a trade for me to get my cash portfolio delta lower. May not be your cup of tea for your situation.
-Kevin