OptionsRising
Short

DIS retraced to 20 SMA, swing PUTS - low risk

NYSE:DIS   WALT DISNEY COMPANY (THE)
Stock touched 20 SMA today, and this "first touch" or a close at/over 20 SMA usually results in a move back down. Usually I look for RSI to touch 50 or just cross it and then turn back down. Due to steep down trend the 14day RSI may turn down before touching 50, or it may take another day if stock price stays up. See today's closing candle and watch RSI , on daily and 30 min chart.

Strikes for puts can be 100, 95 (daily 10SMA), or 90.
Stops can be stock over 105 and over 106.
If stock moves higher you can switch to calls for 113, 120 targets on weekly chart.
Mar 26
Comment: I made a day trade on puts yesterday afternoon. I always update my ideas as new indormation comes in (price action over time). Seeing yesterday's doji candle, if today opens higher I am looking at calls very short term. 60min 20 SMA is coming out of cloud.
Mar 26
Comment: 30 and 60 min trends are up, while daily is down or flattening. use caution and take profits.

Comments

do you still have the puts? i still have weelies strike 100
Reply
OptionsRising lauraanto21
@lauraanto21, Thank you for asking. Please see my comments under chart, about the doji candle. I placed a day trade yesterday afternoon so am not holding any DIS options now. Are you familiar with some basic candle patterns? looking at chart, you could sell some/all around 104-103.50 if it drops in afternoon, and sell some/all on Friday, though it is risky. depends on your trading plan. I do see 30min bearish divergence, but that is no guarantee of Friday selling.
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lauraanto21 OptionsRising
@OptionsRising, Thank you, I closed out my puts at 104. See what happens on Friday. strong short squeeze last 5 min today
Reply
OptionsRising lauraanto21
@lauraanto21, Thanks for sharing. Be content with your decision; this is important. There will be plenty of opportunities on Friday to put your capital to good use.
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How you feeling on this now?
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OptionsRising chaseclayton10
@chaseclayton10, Thank you for asking. Please see my comment above. I am cautious. 105 can be put entry, but stock can also keep rising.
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chaseclayton10 OptionsRising
@OptionsRising, Thanks! Benefited off a call from 2 days ago that I sold at the high yesterday.
Reply
OptionsRising chaseclayton10
@chaseclayton10, Nice! Yes as stocks touch 20 SMA I am cautious. Mostly will use day trades today and tomorrow.
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chaseclayton10 OptionsRising
@OptionsRising, Puts worked. Got out when price was at 97.
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chaseclayton10 chaseclayton10
@chaseclayton10, 100% profit
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