Watch closely to breakout levels, this could very well breakdown as we saw a neutral close on friday, positive earnings after a bottom in January, leading to a higher low in FEB, matching up with long term trend line
Early August proved that all good things can come to an end including the extremely consistent and profitable channel RTRX followed for 6 months. However, recent trends in RTRX may indicate that the original trend channel that ran so consistently might have merely shifted with its August dip. The angle is a complete guess at this point until a second channel...
4H technicals priming for a scalp play on RTRX.
Cut beneath close of trend line on 1D chart unless sell volume unusually high.
Entry price: 27.35
First price target ~29.00
WARNINGS: very volatile stock, did poorly on previous earnings few days ago.
This is a bit pricier than I'd like to go with a covered call, particular in biotech, which can implode on you dramatically if there is a clinical trial failure ... . Nevertheless, here's the metrics on this little fella:
Buy 100 Shares at 16.42
Sell Oct 21st 17.5 call
13.77 db at the mid
Max Profit: $373
Notes: There may be premium to be sold on the...