AT&T looks to be fighting trending resistance, and is further being pressured out of its horizontal channel, falling out of the 28.92/30.04 price range. A light friday candle, arguably a doji, will not hold up this slight move in price northward. Good volume, however, and RSI Indicator suggesting a possible reversal off the 28.92 support. The question - Will it hold?
The current trend says no - 8 EMA is now acting as resistance as well, and the last several weeks are pushing it south. Put/call volume ratio is 1.43, with put volume exceeding call volume. What's hard to tell, imo, is this - is this hedging volume, straddle/strangle strategies?
I do believe, as in the recent past, this opens/pushes bull initially then falls bear. My top 2 strategies;
T (29.00) 28 P 09/18 0.08 Strategy #1 - Limit/market buy 0.08
OR
T (29.00) 28.50 P 09/18 0.15 Strategy #2 - LIMIT Buy @ 0.08, thinking this will open and run north to 29.26, dropping premium to my limit buy 0.08
Strategy #2 fulfills 3 things - a great discount toward a put buy, a better put strike position, being 0.50 closer to underlying price and better delta!!
*Let's see what happens*
DISCLAIMER - I am not a professional trader. These are merely my thoughts and possible moves; i enjoy watching these stocks validate my process or slap me across the face lol. If you are in need of professional assistance with your trades, don't look here. I am not that guy.
Trade closed: stop reached
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What a reversal. The good news is that i didnt pay full price for this option, so there's that lol
The only thing else i would say here is that my thesis about the 8ema being resistance held true, if that's any consolation to me...it was just over the longer time period.
BakiShirzadi
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Nice work
mrmaximo74
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@BakiShirzadi, well we'll see what happens, lol that's my motto.
That being said, i have hit a triple bagger on AT&T several times in the past. But options of course are hit and miss