So currently find myself in a long on SPYSPX that I entered at market close.
I purchased SPY June 21st Calls at the 281 strike & sold to open SPY June 21st calls at the 292 strike. - This is a vertical long call debit spread - the theta decay is incredibly muted because of the hedge leg of the trade - literally nothing for how quick I plan on swinging the trade - initial tgt is 2890.
If I am wrong it really won't matter too much because I believe we will rally off the old channel anyway. If I am wrong then I close out the long and probably will keep the hedge side of the trade to recover the cost of attempting this strategy.
Happy trading! Enjoy this late Friday night TA.
Hey when it comes to Monday morning - Go team bulls!!
What really pushes me over the edge confident in my long & dare I say it but I clearly see an inverted H&S...last time this happened I snagged a crisp +38% return. Think I'd settle for 50% this time! :D
nice chart. what do you mean by quickly swinging the trade? don't you need to hold the purchased calls, till maturity? isn't it extremely risky, even if only in theory to sell them in advance?
Teklologist
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Good stuff. Concerning IHS, aren’t they the most failed pattern? I read that they are commonly shorted prior to completing unless occurring after long down trend. Might be wrong. It frequently happened in crypto after BTC’s 2017 ATH. Though, BTC recently completed one just prior to its current rally.
ZenMode
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@Teklologist, hey brother! And IHS yes you are right, however they have been treating me right. And Bulkowski is my pattern source and they claim it is usually reliable with only like a 30% failure rate if I recall. In total transparency I prob am averaging like 60% accuracy even calling out the pattern correctly though.
@ZenMode, that’s pretty accurate. I had been tracking a possible inverse cup and handle. So, potentially this HS pattern is a means of preventing the inverted cup from completing.
ZenMode
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@Teklologist, good chart! And yes even more implications that if it breaks out it will be very bullish or very bearish. And a breakout is coming.
nice chart. what do you mean by quickly swinging the trade? don't you need to hold the purchased calls, till maturity? isn't it extremely risky, even if only in theory to sell them in advance?