Hey guys, this is Spencer and today I'm sharing a trade that I'm currently in and discuss why you can enter it as well! XLU is the SPDR utility ETF and is riding above its 50 day moving average. It is making a series of higher highs on the daily and I believe it will retest the 200 day moving average which is very close. I bought the September 49$ Strike for 3.10 and am looking to make 25% as minimum. Ultimately, with a longer timeview, this option could be worth even more. Take a look at my video and leave a comment.
She came down a good bit today. I stopped out with a real tight Stop, but the trade still has me very captivated based on the chart pattern going back to 2015 / 2016 timeframe. I would really like to see it play out.
She really looks like to me she struggles mightily when the downslope of the 50 period is approaching the long term trend line. Once the 50 period touches the long term trend line, a much more bullish move ensues. Will she do it again for us? As of yet unknown, but given recent history, she appears inclined to bring that 50 period down to the line and trade below it, before really making that move.
If I get back in regarding today's sell down, I do not see how it survives without a $48 or lower Stop on her. If her pattern repeats though, it's looking more like 150 days to bring the 50 period down to the line.
She really looks like to me she struggles mightily when the downslope of the 50 period is approaching the long term trend line. Once the 50 period touches the long term trend line, a much more bullish move ensues. Will she do it again for us? As of yet unknown, but given recent history, she appears inclined to bring that 50 period down to the line and trade below it, before really making that move.
If I get back in regarding today's sell down, I do not see how it survives without a $48 or lower Stop on her. If her pattern repeats though, it's looking more like 150 days to bring the 50 period down to the line.
Thoughts?