A friend sent me a tweet last night about how banks are levered up on debt and that prompted me to look at the chart of KRE.
As you might remember, AMEX:KRE was one of the worst performing ETFs at the beginning of this year with the failure of a ton of local banks. But since earlier this year, I haven't heard much talk about banks being in trouble.
Well I pulled up the chart, I was surprised to see a massive H&S top forming. If price breaks $37-38, then I could see a big move down. The first target would be $29 and if price gets under that, it could get really bad.
Could see price making it all the way to the lower support levels.
Let's keep an eye on this because it'll be a great trade should it play out.
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Bought puts today 3/15 $40
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Think this is closer to playing out. Loss of support at $46 will be the trigger
Yes. I see it too. I'm totally psyched about it. I bought a put on the 3X leveraged KRE called DPST. I started with 12/15 expiry at the money. Although it went up considerably since you posted - maybe to squeeze impatient shorts. now it's game on
benjihyam
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@jbriley4, Personally, I think 4/2023 is likely a better expiration. Think it's going to take a while to play out.