UBER 10 FEB 32/17 FEB 30 DIAGONAL CALL
BULL PULLBACK SETUP
Detailed definition of setup and what market conditions are desirable:
I've had UBER on my watchlist since about the end of December. And since about August of 22', it's kind of been trading between 31.57 and 26.06. So I was curious to see if it would make it's way back into that sideways channel and so we're here now. And even though overall market sentiment is bearish, UBER has had good momentum to the upside since the end of December.
Detailed Definition of the trigger (entry point) used to enter position:
On January 18th, UBER made a new swing high so I was anticipating a pull back to come. The 19th it retraced back to a support/resistance area of 28.36. I placed an alert to notify me once it traded above the 18th's high which I set at 29.29. It triggered this morning.
Detailed Definition used to determine Stops (abandon or adjust)
No stops. I'm set up for max loss risking less than 2% of my portfolio.
TRADE SETUP
Uptrend: Stock made a new swing high on the 18th. It's also trading above a rising 50-day SMA. The pullback brought this back to prior support/resistance level of 28.36. On the pullback, there was lower or equal volume on pullback and I'll be using yesterdays candle as my reversal candle at area of support of 28.36.
How strike prices and expiration dates are selected
Let's take a look at the hour chart. I drew a trend line from the low of the 27th, and the low of October 11th 2022. I was debating on which strike prices I wanted because there wa an option of a strike price of 31.50. But I decided to go with the 32 strike because I anticipate that it will want to blow through the 31.57 zone I have, and do something similar to what happened between September 9th 2022 and September 21st 2022. uber announces earnings February 8th so I went with the Feb. 10th expiration with the anticipation that this will run up higher going into earnings. So I plan on closing this out no matter what before the 8th.
Position management strategies when the stock goes lower
If this goes lower, I'll just let expire worthless and move on to the next trade. I'm set up for max loss
Position management strategies when the stock goes sideways
If this goes sideway I'd be ok with that. It would have to trade between 30.05 and 28.36 but then I'd want to see this run up before earnings. If it just stays in this range for the next three weeks, I'll let it expire worthless and move on.
Position management strategies when the stock goes higher
Ok, so if this thing blows through 31.57 before February 7th, I'm going to hang on to this to see if this drifts back down to the apex of the trade. But if it decides to hang out above 32 by Feb 7th, then I'll close out the entire combo because I don't want to keep this going into earnings.
Position management strategy at expiration
I'm not going to hold this until expiration. it needs to be close out on, or before February 7th.
Detailed definition of setup and what market conditions are desirable:
I've had UBER on my watchlist since about the end of December. And since about August of 22', it's kind of been trading between 31.57 and 26.06. So I was curious to see if it would make it's way back into that sideways channel and so we're here now. And even though overall market sentiment is bearish, UBER has had good momentum to the upside since the end of December.
Detailed Definition of the trigger (entry point) used to enter position:
On January 18th, UBER made a new swing high so I was anticipating a pull back to come. The 19th it retraced back to a support/resistance area of 28.36. I placed an alert to notify me once it traded above the 18th's high which I set at 29.29. It triggered this morning.
Detailed Definition used to determine Stops (abandon or adjust)
No stops. I'm set up for max loss risking less than 2% of my portfolio.
TRADE SETUP
Uptrend: Stock made a new swing high on the 18th. It's also trading above a rising 50-day SMA. The pullback brought this back to prior support/resistance level of 28.36. On the pullback, there was lower or equal volume on pullback and I'll be using yesterdays candle as my reversal candle at area of support of 28.36.
How strike prices and expiration dates are selected
Let's take a look at the hour chart. I drew a trend line from the low of the 27th, and the low of October 11th 2022. I was debating on which strike prices I wanted because there wa an option of a strike price of 31.50. But I decided to go with the 32 strike because I anticipate that it will want to blow through the 31.57 zone I have, and do something similar to what happened between September 9th 2022 and September 21st 2022. uber announces earnings February 8th so I went with the Feb. 10th expiration with the anticipation that this will run up higher going into earnings. So I plan on closing this out no matter what before the 8th.
Position management strategies when the stock goes lower
If this goes lower, I'll just let expire worthless and move on to the next trade. I'm set up for max loss
Position management strategies when the stock goes sideways
If this goes sideway I'd be ok with that. It would have to trade between 30.05 and 28.36 but then I'd want to see this run up before earnings. If it just stays in this range for the next three weeks, I'll let it expire worthless and move on.
Position management strategies when the stock goes higher
Ok, so if this thing blows through 31.57 before February 7th, I'm going to hang on to this to see if this drifts back down to the apex of the trade. But if it decides to hang out above 32 by Feb 7th, then I'll close out the entire combo because I don't want to keep this going into earnings.
Position management strategy at expiration
I'm not going to hold this until expiration. it needs to be close out on, or before February 7th.
Trade active
Comment:
We reached 31.57. I wanna see the price action here to see if this will continue to 32 by the 7th. If we get to 32 today. I'll close out the combo.
Trade closed: target reached