Sorry I didn't get to post this before NY close ... . Filled for a $94 credit. I usually like to see a $100/contract out of these setups, but I figured it was close enough ... . I'm looking for price to stay between my short strikes between now and expiration and for volatility to contract post-earnings announcement. Post-announcement, price is down about $2...
The bid/ask spreads are REALLY wide on this one. Could try for a .10 limit or higher. I WANT more because of the amt of time one has to wait... So, likely won't do this trade BUT it might be good as a learning experience.
TARGET 1 Price: 31.24 Profit: 10.1% (Typical rally) Stop/Trailing Stop: 27.47 Loss: 3.2% P/L Ratio: 3.2 : 1 - Good
Having announced earnings about two weeks ago, IVR/IV in GME remains high (70/55). The standard setup -- the short strangle: Jan 22 27.5/38.5 short strangle POP%: 71% Max Profit: $113/contract BPE: ~$333/contract Break Evens: 26.37/39.63 Look to take it off at 50% max profit and move on ... .
Otherwise, flush to the teens. Poor company, going out of business long term. Remember: Blockbuster in the 90's.
Price held 50% Fib off a morning star reversal. Retest 52wk before blast off
Well most of us do know about the Gamestop earnings beat. Well that beat propelled the stock up breaking the descending trendline which has capped the upside since January 2014, now approaching strong horizontal resistance at the $44.70-$46.70 area. My approach to entering long on the trade prior to a possible break of horizontal resistance would be to wait for...
If GME opens above 41.73 consider using the Retest Gap Strategy. To get a free and complete trading education go to www.RealLifeTrading.com
After seeing the ascending wedge form recently I noticed that it could be considered completing a reversed cup and handle pattern. We also just had MACD cross down on the signal, but I could see it oscillating in the wedge a bit longer before breaking out.
GME expected to open at 36.25 for a Perfect Gap N Go. To learn to trade this strategy for free, go to www.RealLifeTrading.com