Quick pattern update here.
WES appears to have an Inverse H+S pattern forming on the lower timeframe.
A clean break from the pattern would target the $9.30 range, setting a conservative exit, with a close below the purported right shoulder would minimize potential for losses.
WES has been one on my list for a while lately and I recently closed a position for...
~ $4.00 Strike Calls
~ May 15th Expiry
~ Cost = $0.40/ contract (at time of writing)
~ Delta = 0.56
~ Run 5x contracts = $200 total outlay for the trade (subject to change)
Profit Targets/ Exit:
~ Due to the low cost of the trade, i will likely not run a stop on this position, but i have...
The last paper in the shorts for today
Like the previous three, the stock does not follow the market. I really like such papers, they are simple and clear. Once again, big money is traded on simple principles...
Accumulation suggests that having broken the level of $3, we can get a simple shorts.
Guys, if anyone can make money on stocks today, let me...
Ticker: WES (right side is XLE for comparative purposes on a weekly)
- Feb 21st Expiry
- 5x $20 Strike Puts (ITM) - delta = 0.60 - cost = $1.38/ contract
- 5x $18 Strike Puts (OTM) - delta = 0.19 - cost = $0.35/ contract
- Should the stock move to the initial target, the OTM options will be more than covered by the ITM options increase in premium
Western Gas Partners (WES) broke out of the small downtrend (yellow).
It means that wave B is over and the wave C up has started.
Price could reach either the previous top tagged by wave A at 67.44
or hit further up to touch previous major top at 79.81 as highlighted with orange rectangle.
The lack of clarity in the ADX and stable OBV show that WES is suitable for a range trading strategy.
As such, a long at the current quadruple bottom combined with a crossing MACD is appealing for a long entry.
A stop below the recent lows and price target of the 50% fib or higher is appropriate.