OptionsRising

TRVG - Trade idea, low risk call options, little capital needed

Long
NASDAQ:TRVG   TRIVAGO N V SPON ADS EACH REP ORD SHS CL A
This is a very interesting daily chart for me. RSI (7 day) dipped below 50 and is back over today. If it closes over 50 then tomorrow a trade over today's high gives a trigger long.

Yesterday's candle closed at 20sma, and stochastic below 20 should support a move higher in price as it turns up. The TTM is quite negative and while it does not give a buy signal, I will look for the bars to get shorter in support of a price move higher.

I like this trade because 2/19 expiry 2.50 strike calls are less than 50 cents. Anytime I hold options in a swing position I must be prepared to lose it all (anything can happen). In this example, if I buy 1 call contract I spend less than $50 so that is the max I can lose. The reward to risk is fantastic. Only spend an amount of capital that you are willing to completely lose, and identify your loss exits (% loss on option, trade below recent low, below daily support zone ).

Comments

PE vs Industry: TRVG is unprofitable, so we can't compare its PE Ratio to the US Interactive Media and Services industry average.
I don't think so it's good bet. I mean you can play lotto. Options prety cheap.
Reply
OptionsRising UnknownUnicorn12624770
@UnknownUnicorn12624770, I avoid "playing lotto" and place trades that have support from the chart - my trade is based on the bullish technical indicators that I described, though signals are not very strong yet. On 15m chart there is sideways consolidation after a move up and this will be good to keep an eye on for a confirmed move higher. Thank you for your comment. I will try to post a follow up after some time has passed.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar About Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Private Messages Chat Sign Out