Market structure of the index appears to reveal a slightly downward path of price where price action has reached a short covering price target.
Price action is approaching the center line but needs to be evaluated how it reacts to that price level as there may still be an abundance of buyers to advance the price higher from these levels.
As price action has quickly approached the center median line, and recently retested the 100 level, a decline toward 80 is possible. Risking 2 point to make 9 provides a great risk to reward opportunity for short directional traders. This signal is in contrast to the other by signal. However, 10x risk is always better than 3.
As AAPL has found support on the 90 area already now twice. Stops below 90 seem appropriate and entry at this time provides a good return relative to the risk. Failure through the 90 area of support will render this buy signal a failure.
A price target of 130 and higher risking 10 points is at least a 3x risk to reward trade opportunity.
Entered into FB the day before earnings via a call ratio spread.
Selling 1X Feb 07 strike 54.5 calls short and buying 2X Feb 14 strike 60 calls long.
The strike spread was to large. Unloaded the 54.5 short today and if the price action breaks to the upside before the feb 14 long expires the trade will work out ok.
Curious of any options strategies that can...
CERN just reported earnings, it was the reaction that happened in the trading the day after that was noticed. Previously it appeared before earnings that the third point of the median line was established, and perhaps it was...however, today's action resulted in a wide range bar WRB where buyers showed up.
At this time, waiting for the price action to confirm...