... for a .37/contract debit.
Comments: In for 1.50/contract (See Post Below), out for .37/contract here; 1.13 ($113) profit per contract with 21 days to go. It's still somewhat weak here, but implied volatility has crushed into sub-35, which is kind of my exchange-traded fund implied volatility cut-off.
Come Monday going to look at a position in XBI (if it has not gone too far). Pulled back and spiked at the Weekly 50% Retracement that matches with prior price action. Stop needs to be just below the low of May 11th.
The industry for this ETF is Biotech. This should make Cathie Wood happy.
I opened a Collar trade on this.
Trade Management: Long put @115
Short Call @130 June 18th
Learn, Plan, Size and Manage.
This publish is not an investment advice. I am not an investment advisor. So, you are solely responsible for your actions on your money.
It's been a rough ride for bios lately, but a reversal could be coming very soon. As you can see in the chart, $XBI, the biotech ETF that I like, has fallen to an important VWAP and to the 50% retracement. Today we bounced off of that level, forming a sort of hammer candle on this Heikin Ashi chart. This fund is also currently at the bottom of the daily RSI, which...
S&P Biotech ETF (XBI) is a strong Buy currently at the lower end of its weekly range. Risk/Reward looks very favorable for a long position (Buy) and holding for next 2-3 months (8-12 weeks) for targets of 150-170.