I am more inclined to be bullish the SPY but I mitigated my risk by structuring it accordingly. Sell Calls 24 July - Strike 340, 1.14, Qty 3 Buy Calls 31 July - Stike 312, 11.50, Qty 1 This gets me a bearish risk of -$1612, Max Win of $3940. Worst case scenario is when price goes beyond 349 before my expiry. I bought different calendar dates to get a more...
I bought puts on Tiffany as I felt like the stock was buoyed by the news of the LVMH acquisition bid last year. It did not seem to be hugely affected by the Covid virus and the potential upcoming economic slowdown implications. With April's non-farm job numbers going to reflect rising unemployment numbers. Corporate and consumer debt also catching up. This...
I decided to do a small hedge to mitigate my bearish stance specifically on my 15 May expiring TIF options. - Sold Calls at a 40 Strike for 2.5 (6 Contracts) - Covered my short by buying a call at 54 Strike for 0.62 (6 Contracts) This gives me max earnings of around $1128. - If the Market Crashes and TIF still doesn't move. My Visa and Expedia Shorts will come...
Decided to sell covered VXX Calls as i'm pretty unsure about making Industry specific trades as it's very detached from the economy. But what I've learnt so far is that it is not a fact that the market needs to correlate with the economy. Trading volatility seems like a good idea, as an exercise I have tried to justify two market scenarios. Market Rises/Range...
With implied volatility at an all-time high, it seemed safer and more straight forward to short stocks instead of buying put options. I've been monitoring Expedia for abit and it seems like while there has been price retracements upwards the volume has been decreasing. The move up, in my opinion is driven by the stimulus measures. The stimulus measures are...
I've been waiting for the top of this potential retracement from the initial virus bearish move. The candlesticks from the last 7 days, together with the decreasing volume seem to be good indicators of a bearish continuation. Other factors would contribute: - March 2020 US retails sales showed Discretionary sectors posting deep declines - 15 April FT report "US...
26 Feb I bought Uber puts as the transport industry in CN was one of the key victims to the virus. US at this point had not felt the full extend of the virus and I was certain CN's economic situation was a leading indicator of what was to happen. Uber was prime also because it's generally a risky company and I expect investors to run for the hills once shit hits...
The entire market and retail category crashed because of COVID panic but FLWS held strong for some reason. I think part of it has got to do with its profitability. Which seems to be a distraction to the larger slow down happening. With the increasing spread of the virus, businesses and their employees are going to be tighter with their wallets. We should see...
Price has already tested and broken the SR line once. Will enter short when price hits high RSI band but is below Green SR line and 200 EMA. Risk Reward is 1.67
The Entry My favourable entry would have been at 1856.5, however the current price at 1729.0 is a clear break down of the 0.382 fib level This is also tied to the overall bearish market direction and sentiment The Situation Technology stocks have taken a beating and in light of the trade tensions and lower CN travellers, luxury stocks are in a very...
The Entry The break of $600 a key resistance point as a nice whole number and as the Fibs 0.61 point ADL has been gradually rising and RSI is nicely at a 53% Will look to enter 1 hour after London opens today The R/R so far looks like a 1:1.5 ratio The Situation With the close of Oct, money seems to be flowing back in the the markets Midterms are...
The Entry ALGN has had repeatedly good earnings and I believe last week's crash is an opportunity given the situation was largely driven by the broader market The Situation Entering trade because ALGN current price is nicely positioned above the 200MA line and is one of the few stocks that has managed to be in this position despite last weeks crash. ...
The Entry I wanted to enter on the 24 Sep, but was apprehensive as price was not near the resistance line. On the 25 Sep just around the open at 9.30am I realise that the price was near the resistance line and so I entered. I wonder if I should have waited till 11am where the market open rush would have normalised. The Situation I think price will go...
Entered a long trading again at the pullback that coincides with the NDXT index
Semiconductors are crucial to the development of tech consumer goods. The trade tariffs are predicted to contribute to in increasing prices of tech devices for US consumers. This will lead to lower consumer spending. Txn has broken 200 MA with new lows that is tied to above average trade volume vs the 30 day vol avg. 20% Account Risk 30% Margin used 3...
Alibaba's price dropped in the first hour alongside the market because of the trade fears. I took that as an opportunity as Tmall owned by Alibaba is also participating in the 618 mid year festival. The key difference is that Tmall has extended their sales to the region namely Hong Kong, Taiwan, Singapore and Australia. This means that in addition to China...
15 June JD.com had risen along side all major technology stocks including the NDXT. The Dow Jones however had dropped and this lead me to believe that people were exiting other categories and entering into technology as a safe haven. This could also be because of the trade wars chatter between US & CN that has lead to people leaving categories that had a reliance...
With internet video consumption increasing Netflix is in a pretty strong position with only potential positive news that can prop it up. Therefore a market wide tech dip is an opportunity for a short term trade to go long and sell at the previous high