I trade primarily options and primarily swing trades.
And I LOVE set ups like the one GLXY is going into.
There are signs of a possible reversal from the downtrend:
1. It's at the old resistance level.
2. It's now retesting the support level from September
3. It's coming down into the POC and significant volume.
4. It's near the downward trend line.
5. We're at the 100 day moving average.
Now, my preferred trade type here is to sell puts. The reasons are:
1. The position doesn't need to go up, for me to profit. Sideways action - or even slightly down, and I'm still good.
2. If the position breaks down, I'll own the stock at a discount. No biggie.
Usually, I don't trade options that are more than 2 weeks out, but I also like to place the strike at a decent level of support. The options here are the POC line at 28, or the 200day at 25
For next Friday (Nov. 14) the 28 strikes are $0.60, and the 25s are $.15
I'm going go just under the POC at 27 for $0.35.
This trade is active.
And I LOVE set ups like the one GLXY is going into.
There are signs of a possible reversal from the downtrend:
1. It's at the old resistance level.
2. It's now retesting the support level from September
3. It's coming down into the POC and significant volume.
4. It's near the downward trend line.
5. We're at the 100 day moving average.
Now, my preferred trade type here is to sell puts. The reasons are:
1. The position doesn't need to go up, for me to profit. Sideways action - or even slightly down, and I'm still good.
2. If the position breaks down, I'll own the stock at a discount. No biggie.
Usually, I don't trade options that are more than 2 weeks out, but I also like to place the strike at a decent level of support. The options here are the POC line at 28, or the 200day at 25
For next Friday (Nov. 14) the 28 strikes are $0.60, and the 25s are $.15
I'm going go just under the POC at 27 for $0.35.
This trade is active.
Trade active
Sold puts for $0.35 at a strike price of $27 expiring Friday, November 14.Will update if this trade gets complicated.
Note
A perfect bounce off the trendline yesterday. Note
I guess I lied, the put I sold was $0.419.It's down to $0.15.
I decided to roll this out and down. So, I've rolled the 27stike to next Friday and down to a 26 strike.
Realized profit off the first option trade was $26.90.
The new put for the 21st was sold at $0.29 per share.
I decided to go down to 26 as the 200 day moving average is there and it provides a bit more protection.
Note
The bad news: Structure totally broke down on us. We're now out of the channel.The good news: the 200 day EMA held up (which is why I wrote the put down below it).
Currently, I'm still holding that 26 strike. It's not ITM yet, but it's value is way up ($1.25 per share on close). So the position is -325%. Hoping for a bounce on Monday, but if I own it here, that's ok too.
I like GLXY and my 1 year target is about $40. So we'll see how this plays out next week.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.