Buy Jull Puts @ $3.80

Multiple reasons to like this trade:
1. AZN is in a downtrend, broken by a 3 month move above 200sma.
2. Prices are below the 200sma and have broken previous lows.
3. Good RSI weakness corresponds to the move lower.
4. AZN is a weak stock in the IBB sector.
- Prices reached a bottom on the daily chart and are now making a 2 leg move to a target of $29.30.
- Prices will then be within the Raghee Horner 34EMA Wave and the wave is still in a downtrend.
- Based upon a option Delta of 0.575, Buy Puts @ $3.8 and run down to $27.50 level for first profit stop.
Good Hunting!

Komentarz:

I must've calculated the option pricing for the 34EMAL cross and not the $29.30 price target. We will use the July17 30 Puts @ $3.40 as the price target.

The one concern I have at this point is the limited Open Interest (~400 contracts) and $0.50 Bid/Ask spread. I will have to watch these closely as we approach the price target. We may look to purchase Apr17 30 Puts if these become a Risk/Reward Concern.

Good Hunting!

Anulowano zlecenie:

Hopefully everyone bought Puts at the 34EMAL...lol! Prices never reached my sell price or option price level, but prices definitely sold off just under $29. If you had bought Puts, exit part of your position below $27.7 (Or now, as prices are @ $27!).

Watch for continuation to the previous lows around $26 and the Keltner extreme price levels around $25.5.

Good Hunting!