$GPS Target 37.60 for 20.78%
Or double position at 24.66
OOOOh, this one has a divy too. ☀️
On the far right of the chart is my Average (Grey) Current Target (Green), and Next Level to add (Red) Percentage to target is from my average.
I start every position with 1% of my account and build from there as needed and as possible.
I am not your financial...
NYSE:GPS fired off a bullish signal this morning at a support level that fit my rules for a long trade entry. I'll be watching this closely through the week as the stock has Earnings on 5/27 which can be a maker or breaker of a great trade.
I'm late to the party here but we have clean price action and wave count, we can therefore take advantage of the smaller mouvements not only the bigger ones.
In this case, I'm waiting for the orange wave iv pullback to start initiating some longs that could yield some 20%-25% without much risk.
Red wave iv will be the more interesting move afterwards.
Only one underlying makes my cut for a earnings announcement volatility contraction play: GPS (25/70/14.9%),* which announces on Tuesday after market close, so look to put on a play in the waning hours of Tuesday's session.
To me, it's small enough to short straddle, with the pictured setup paying 3.72 (.93 at 25% max). Alternatively, go short...
... for a 2.49 credit.
Max Profit: $249/contract
Max Loss: $251/contract
Break Evens: 14.51/19.49
Delta/Theta (Currently): -8.91/3.12
Notes: Couldn't post this yesterday due to the number of "Update" posts I did ... .
High implied at 87.5% with earnings to be announced today after the close. A classic risk one to make one iron fly which I'll look to...
GPS (37/82/17.0%) is really the only earnings announcement that interests me from a volatility contraction perspective. Pictured here is a September 18th skinny short strangle, which was paying 2.03 as of Friday close.
EXCHANGE-TRADED FUNDS SCREENED FOR IMPLIED >35% AND WHERE THE OCTOBER AT-THE-MONEY SHORT STRADDLE IS PAYING >10% OF STOCK PRICE:
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Lets keep it simple.
We see GPS Inc trading in an ascending channel on the daily. If it plays out perfectly it'll pass $15 to retest the top of the channel which is just about the same location as the...