*** This is not a gamble. This is a technical-based trade with planned entry and exit.
I have been patiently watching price action and indicators. Let's focus on last seven days here only.
White arrow shows a big green candle with high volume, and a sharp RSI and stochastic move up from oversold conditions. Price reversed on equally high volume (which is my only concern here) and stair stepped lower until this morning when we tested (and broke) lows of the big green candle. Normally I would look for bullish divergence on today's lower 30m close, but it is not quite there.
Pink dotted line connects highs. Green dotted line connects closing prices. I am looking at the yellow arrow, or maybe the next one or two candles, to see if price breaks up and out.
I can buy calls and set a low risk stop to exit if prices moves lower again.
Check closing price relative to VWAP also. You can take a small position for a high return to risk swing trade with 2/19 calls. IV is relatively low right now.
I have been patiently watching price action and indicators. Let's focus on last seven days here only.
White arrow shows a big green candle with high volume, and a sharp RSI and stochastic move up from oversold conditions. Price reversed on equally high volume (which is my only concern here) and stair stepped lower until this morning when we tested (and broke) lows of the big green candle. Normally I would look for bullish divergence on today's lower 30m close, but it is not quite there.
Pink dotted line connects highs. Green dotted line connects closing prices. I am looking at the yellow arrow, or maybe the next one or two candles, to see if price breaks up and out.
I can buy calls and set a low risk stop to exit if prices moves lower again.
Check closing price relative to VWAP also. You can take a small position for a high return to risk swing trade with 2/19 calls. IV is relatively low right now.
Comment:
I realized that my short info (>100%) is wrong. According to the latest info I am seeing short float of about 42%.
* Daily %K stochastic is under 1, so I am looking for at least a bounce move soon
* IV is greater for 2/12 and 2/19 expiry calls, compared to same delta puts. Volatility skew is bullish right now