This idea is an analysis of this season's widowmaker spread breakdown done in hindsight for future reference. See idea linked below for last season's widowmaker analysis. Idea explained on the chart.
Snapshot of chart before publishing distortion:
Attention all traders!
Based on my experience and studies of price action, I am predicting a selloff movement of the Forex instrument GBPJPY.
Price action is a method of technical analysis that looks at the movement of a security's price over a specific period of time. It is used to identify patterns and trends that can be used to make trading...
This PA will take some time to play out but I am sharing the main prices im watching to catch some nice meat cleavers. A lot can happen between now and then so a million things can cause this to not play out but i do like what I see. Please read chart notations for further breakdown. If you have any questions feel free to message me. I am long shorter term into...
We do have some impactful USD data coming up - being that Japan and USA are such big trade allies, oftentimes the yen piggybacks on USD strength. I would like to see the price delivered above the midnight algo candle high into the bearish 4H OB- to produce a clean short opportunity for us. Let us see where the price is at and what it is doing at UK open.
As I pointed out before this is a bears dream and while I have placed other trades over the years, with very few exceptions all I do is buy Long Term Puts on UVXY. I made a comment on another post that it would take Armageddon to make UVXY appreciate that is not entirely true. While there is a chance the position could appreciate 10-20% at some point in time, the...
This spread is called the Widow Maker and right now, you can see why this spread has its nickname. The extreme becomes more and more extreme. However, we think now is a good time to sell this spread.
If you sell this spread then you are trading 2 things
sell March
buy April
The goal is that the spread is tightening again.
I chickened out of my Widow Maker spread and closed out my position. I replaced it with a 2.7 / 3.6 strangle giving me a total of 2 strangles on. My plan is to strangle the widow maker and make some gains or at least scratch the entire trade.
Horrible puns intended.
I bought this Widow Maker spread where I thought it was at a low. Apparently it's lower. I sold a PUT to reduce the cost basis.
Nothing to do but hold through the draw down.
My cost basis is 0.210
