NASDAQ:EVFM   Evofem Biosciences, Inc
318 views
3
Weekly downtrend wedge bottom line
Huge volume near the turning point
RSI Divergence
OBV>OBV20 (weekly OBV SMA20)

Entry 1.3
Stop 0.8
Target 4.6

Risk management is much more important than a good entry point.
The max Risk of each plan should be less than 1% of an account.
I am not a PRO trader. I trade option to test my trading plan with small cost.
Trade active: BuyToOpen (BTO) 2022 C1.5 0.45x10
No Stop
Prepare to Sell C3 or above
Trade active: Today, I Found 2023 Jan 5 Call, 5.5 call and 7.5 Call could be sold at good price,
Buy 2023 C1 0.75x10
C1.5 0.65x1 -- only one contact filled
Sell C5 0.4x5
C5.5 0.35x1 -- only one contact filled
C7.5 0.3x5
To reduce the cost in one stock, I sold 2022 Jan 5.5 Call 0.15x10

The avg of all above,
2022 C1.5/5.5 and 2023 C1/C5 hold $4 call spread with cost 0.3,
Plus: 2023 C1 has 0.2 ITM value today.
Trade active: one more limit order had been filled.
bought 230120C1.5 0.6x5
Sold 230120C5 0.4x5
Combined is C1.5/5, cost 0.2x5.

Comments

When you say C3 what does that mean? I'm fundamentally bullish on this stock too and ive already got debit spreads expiring on october. I will most likely add to my position this upcoming week
Reply
@brianveluz, C3 means "Call strike price is 3". In this trade, I bought 2022 Jan 1.5 Call (C1.5), cost 0.45/ per contract; prepare to sell 3 Call at 0.45, to build Call spread 1.5/3 for free.
Different brokers may use different code. For example: in YAHOO finance. EVFM220121C00003000 is EVFM -2022 -01-21-C00003000, C00003000 is Call 3;
Reply
stk20153 PlanTradePlanMM
@PlanTradePlanMM, And when are you going to sell this call spread? before it hits 3 or you wait longer?
Reply
@stk20153, It was planed to sell C3 to get 0.45 back when price near 2. today, I changed it. See the new trades I added today.
Reply