This is my uneducated guess
Trade active:
Thank you for the likes everyone.
I originally posted this to send to a friend. But since I appreciate the two likes (that's a lot for me), I will write.
I bought some puts at $50 strike price and $45 strike price. I know that the bollinger band and gap fill could go up to 60, and extend to 69 in this falling wedge. However, looking at the S&P where I expected a 15-21% bounce based on VIX and previous volatile bounces from the low - we are at that point now. I think SQ is starting to top off (short-term) and what we've just seen is a short covering rally. Market conditions are not great, market definitely has significant liquidity concerns and this recent pump is a great opportunity for people stuck in long positions to lighten their position in the likely scenario we see further downside.
I see good odds that we could see the ~$30 low again in the near future - about 9-15 trading days.
I originally posted this to send to a friend. But since I appreciate the two likes (that's a lot for me), I will write.
I bought some puts at $50 strike price and $45 strike price. I know that the bollinger band and gap fill could go up to 60, and extend to 69 in this falling wedge. However, looking at the S&P where I expected a 15-21% bounce based on VIX and previous volatile bounces from the low - we are at that point now. I think SQ is starting to top off (short-term) and what we've just seen is a short covering rally. Market conditions are not great, market definitely has significant liquidity concerns and this recent pump is a great opportunity for people stuck in long positions to lighten their position in the likely scenario we see further downside.
I see good odds that we could see the ~$30 low again in the near future - about 9-15 trading days.
Comment:
Spot price was around $59 when I bought puts, FYI. I'm looking at 2-3 weeks out.
Comment:
My price target is $26 by April 9th to April 17, 2020.
Comment:
Trade didn't work out but I let go seeing S&P go up. I re-entered short positions at the red line around $60-64.
Not sure how this go considering how irrational the market has been. The finance ER sector has been reporting negatively while big money continues to pump the market, and tech with the assistance of the FED.
I think there could be a rug pull at anytime but it would make sense for the pump to continue also throughout ER to create liquidity for big money. Everytime they sell in the past month, circuit breakers happen. Only way for them to create some level of liquidity is continuously pump this up or drag this inevitable fall out longer.
Not sure how this go considering how irrational the market has been. The finance ER sector has been reporting negatively while big money continues to pump the market, and tech with the assistance of the FED.
I think there could be a rug pull at anytime but it would make sense for the pump to continue also throughout ER to create liquidity for big money. Everytime they sell in the past month, circuit breakers happen. Only way for them to create some level of liquidity is continuously pump this up or drag this inevitable fall out longer.