Currently holding calls for Jan15 hedged with 220Jan15 puts incase it decides to go for that double bottom at 211.
Now I see either one of two cases happening here, if we compare to its historical trends;
Case 1: Similarly to 2017-2018, we see a short rally (2-3 weeks) followed by another double bottom retest at the 211 level. Ideal for medium term option holders to get a way out with profits and reinvest in the coming double bottom. Case 2: Similarly to the most recent correction, we see a huge volatile week after that candle that closed above 0.618 level where short term option holders have a chance to profit as well as lock in some shares if it did retest the 211 level during that week.
I do not see it breaking 211 whatsoever simply based on the history of the stock. Always stay open to all possibilities and outcomes nevertheless.
I won’t cut unless it breaks my weekly chart im expecting a Pull back tomorrow and maybe Tuesday with the Georgia elections coming into play but baba is oversold and should bounce
BAS55
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@brianconrey79 so thats 210ish?
MGNCAPITALMARKETS
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I agree BABA Buy under 219. We might see 209. I agree with you this is the range for the next 20 days at least
FamilyTreeInvesting
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Now curious to see what happens with jack ma reported missing
BAS55
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@brianconrey79 appreciate the input! This week will probably be make or break for our calls. Would you still ride them to expiration even if we had a consolidation week this week ? or would you take your losses and flip them to feb or march?
FamilyTreeInvesting
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i like your analysis and similar to mine and on my daily RSI is sitting at 34 which is lower than i wanted for my 250C/JAN15 as i wasnt expecting as much of a sell off on friday that we got. I do not think we retest the 211 either as that would break my channel. The china delisting news could spook some people too but interesting to see what this week holds.