THURSDAY WAS AN UGLY GAP DOWN!
THE POSITIVES FROM THURSDAY WAS THAT IT CLOSED $3.00 ABOVE THE LOW, AND LESS THAN -$2.00 BELOW WEDNESDAY LOW.
FRIDAY (AS OF 45 MINUTES BEFORE THE OPEN) LOOKS TO OPEN ABOVE THURSDAY'S HIGH. THAT IS A POSITIVE.
BUT HOW MUCH WEAKNESS WILL THERE BE AFTER THE OPEN?
WILL IT FILL THE THURSDAY CLOSE GAP 290.10?
IF SO, WILL IT BOUNCE OFF THAT OR SLICE RIGHT THRU THAT?
OUR STRATEGY TODAY:
WE WILL SELL OUR CALLS WE HELD OVERNIGHT SOON AFTER THE OPEN (1/3 POSITION HELD FROM THURSDAY)
WE MADE 70%+ ROI ON (2/3 THURSDAY) AND SHOULD BE 100% ROI ON LAST (1/3 FRIDAY)
THEN WE WILL WATCH THE FIRST LEG DOWN TO SEE WHICH QUESTIONS ABOVE ARE ANSWERED.
FRIDAY'S FIRST TEST OF 290.10 HOLDS= BUY 289 OCT 16 CALLS
FRIDAY BREAKS 290.10 AND REJECTS BEING UNDER 290 LEVEL=BUY 289 OCT 16 CALLS
THURSDAY'S CLOSE 290.10 BREAKS AND ACCEPTS= WE BUY 291 OCT 16 PUTS IF VWAP HOLDS NEXT HIGH
WE WILL LOOK FOR TEST OF 289.00-288.80 AREA AND PROBABLY SELL OUR PUTS
OUR MODEL PREDICTS THAT FRIDAY LOW SHOULD BE ABOVE 288.80 BUT IF THAT BREAKS IT IS 286.64 IS SOON TO FOLLOW= BUY 290 OCT 16 PUTS
IN 2020 ON FRIDAYS WE HAVE SEEN HUGE SELLOFFS THAT SEEM TO BOUNCE $2-4 DOLLARS OFF FRIDAY LOW...SO WITH HOLDING PUTS YOU NEED TO BE NIMBLE OTHERWISE WINNERS BECOME LOSERS REAL FAST.
GOOD LUCK TODAY!
THE POSITIVES FROM THURSDAY WAS THAT IT CLOSED $3.00 ABOVE THE LOW, AND LESS THAN -$2.00 BELOW WEDNESDAY LOW.
FRIDAY (AS OF 45 MINUTES BEFORE THE OPEN) LOOKS TO OPEN ABOVE THURSDAY'S HIGH. THAT IS A POSITIVE.
BUT HOW MUCH WEAKNESS WILL THERE BE AFTER THE OPEN?
WILL IT FILL THE THURSDAY CLOSE GAP 290.10?
IF SO, WILL IT BOUNCE OFF THAT OR SLICE RIGHT THRU THAT?
OUR STRATEGY TODAY:
WE WILL SELL OUR CALLS WE HELD OVERNIGHT SOON AFTER THE OPEN (1/3 POSITION HELD FROM THURSDAY)
WE MADE 70%+ ROI ON (2/3 THURSDAY) AND SHOULD BE 100% ROI ON LAST (1/3 FRIDAY)
THEN WE WILL WATCH THE FIRST LEG DOWN TO SEE WHICH QUESTIONS ABOVE ARE ANSWERED.
FRIDAY'S FIRST TEST OF 290.10 HOLDS= BUY 289 OCT 16 CALLS
FRIDAY BREAKS 290.10 AND REJECTS BEING UNDER 290 LEVEL=BUY 289 OCT 16 CALLS
THURSDAY'S CLOSE 290.10 BREAKS AND ACCEPTS= WE BUY 291 OCT 16 PUTS IF VWAP HOLDS NEXT HIGH
WE WILL LOOK FOR TEST OF 289.00-288.80 AREA AND PROBABLY SELL OUR PUTS
OUR MODEL PREDICTS THAT FRIDAY LOW SHOULD BE ABOVE 288.80 BUT IF THAT BREAKS IT IS 286.64 IS SOON TO FOLLOW= BUY 290 OCT 16 PUTS
IN 2020 ON FRIDAYS WE HAVE SEEN HUGE SELLOFFS THAT SEEM TO BOUNCE $2-4 DOLLARS OFF FRIDAY LOW...SO WITH HOLDING PUTS YOU NEED TO BE NIMBLE OTHERWISE WINNERS BECOME LOSERS REAL FAST.
GOOD LUCK TODAY!
Trade active:
WE BOUGHT THE 289 AND 290 CALLS ON THE SELLOFF. WE ARE HOLDING OUR POSITIONS STILL LOOKING FOR A POP ABOVE VWAP AND A TEST OF 292 LEVEL BEFORE THE CLOSE. MUST ADMIT THAT THE VWAP IS ACTING AS GREAT RESISTANCE AND WE WILL HAVE TO SELL IF 291.42 HIGH NOT BROKEN IN NEXT 30 MINUTES WE HAVE 290 CALLS WITH $1.25 AVG AND 289 CALLS $1.55 AVG
WE ARE TRYING TO GET $1.80-2.00 FOR THE 290 CALLS AND $2.80-3.00 FOR THE 289 CALLS
WE ARE TRYING TO GET $1.80-2.00 FOR THE 290 CALLS AND $2.80-3.00 FOR THE 289 CALLS
Trade closed: target reached:
WE HAD ORDERS WORKING THAT FILLED ABOUT 2/3 OF OUR POSITION ON THE LAST MOVE ABOVE VWAP. WE SOLD THE REMAINING CALLS WHEN 290.60 BROKE ON THE SELL DOWN. OVERALL MADE 30% ROI ON THE CALLS