Description RBLX had an unexpected earnings beat and gapped up ~30% AH. A break and hold over 100.68 will mean supply is exhausted and trigger a long. A close > 100.68 triggers a long.
Using Call Debit Spread, because profit is always limited by time. Will look to enter at EOD.
Call Debit Spread Tentative Levels on Chart SL is a daily close < 100.68. *Stops based off underlying stock price, not mark to market loss
The Trade BUY 11/26 110C SELL 11/26 125C
R/R & Break-evens vary on fill. Long Call is placed at 110 for reasonable debit on position. Short Call is placed at highest strike expiring EOM.
Manage Risk Only invest what you are willing to lose
Trade active
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Filled same week 125C @ 2 for the pile on play.
Trade active
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Went for 11/19 110/120C's filled @ 2.9. Max Loss < 110 Break-even @ 112.9 Max Gain > 120
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The 125C was closed @ .75, -63%. Paid too high of a premium for it and closed IAW my risk tolerance.
Trade closed manually
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Closed at .76, -74% I will see about putting in a reverse position EOD, looking for an entire retracement of earnings move, filling gap and touching the channel.
I heard this will go up a lot due to metawars stuff but not sure I’m not a pro
BarnardR
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@neurojen, I heard they have a big stake in the metawars too, although I'm just following the technicals. Looks to be supply is exhausted and all that is left is demand. Time will surely tell.