ZUMTOBEL Weekly Technical AnalysisT9Z Weekly - EDUCATIONAL only - Support, Resistance, Trend Lines , Clusters, Fibonacci, Pitchfork - Hope it Helps, Good Luck
Trade ideas
2nd Trade: Zumtobel and the 52 Week StrategyThe second trade in the £800 to £1 million challenge is a short on Vienna Exchange Stock Zumtobel. In my first post, i highlighted that during the challenge i will be using Put Options to go Short. There are 2 reasons for this. Firstly i love Options Trading and secondly i feel more comfortable with a maximum loss. Buying a Put Option allows me to firstly reduce my cost exposure and going into the trade i know i can only lose the cost of the option premium.
Why did i chose Zumtobel to short?
Trading strategy 1 (Name: B52) highlighted that the stock was in the danger zone. This strategy effectively looks at where in the cycle a stock is at and calculates the percentage distance from either its 52 week high or low. In the case of Zumtobel, the system came back with screaming shorts.
To confirm the trade i overlayed Trading Strategy 2 (Name: AlphaR). Based on linear regression, the strategy highlights break points and pressure zones. In the case of Zumtobel, the pressure zone highlighted further downside risk.
Trade Details
04/07/2018 11:21 04/07/2018 Buy 3 ZAG P4.80 21DEC18@0.3 EUR (DE000C2GV9J8) ZAG P4.80 21DEC18 EUR -90.00
In summary for a cost (premium) of 30c (EUR 90), i have exposure to 300 shares on the downside. I did buy out of the money puts at the time, however gave myself enough time (Dec expiry) for the stock to reach the target. I believe the stock will go to $3.50.
