ILMN Sold off big time and fell lower, similar to ALGN
Put Spread $282.5/252.5 EXP is September 27th
30 points wide and cost was $9.13
Market continues to sell off and it could move lower to EMA 200 where it may bounce.
Exit 1 underlying price of $252.5 and max profit will be $1050 Time looks good and my preference for this move is around 45 days.
After bad guidance and downgrades, $ILMN was destined to fall. My theory for initiating a swing trade is the selling was too overdone. This is not a long-term "long" but an idea for a short-term "long". I think it is very likely to recover to the 200 EMA (purple line) but watch there is a daily trend line (black line) which will likely be strong resistance too....
The major damage has been done in NASDAQ:ILMN but further damage is very possible, those that bought the dip today got no reward and will have a anxious wait on monday to see if more downgrades will follow. It will take some time before investors will rush back into the stock as it still carries a very hefty valuation.
The genetics company expects to report...
Bullish to neutral.
I placed this spread earlier today. This stock has been lagging yet bullish move is strong for now, this is the reason for a bull put spread, so I can use some of this bullish move, but also if it retraces I can still profit.