Eyes on GOOG - Swing Put Setup for the Gold
In keeping with the spirit of the Olympics, this trade - if it happens - might be the best trade this month (or next).
Both Charts:
> White rectangle on weekly, starting 19 July 2021, is expanded on daily
> SMA's - 10 in orange, 20 in green, 50 in blue, 200 in purple
> RSI testing 50 - now will it hold or break lower?
> Stochastic - watch to see if %D (orange) turns down
Weekly chart:
> I rarely use Fibonacci, and it is fascinating that 0.382, 0.5, and 0.618 retracement levels match up with areas of consolidation (now supports).
> Dotted lines with numbers indicated retracement prices.
> 10sma is below 20, while price bounced up from 50sma to 20sma resistance.
Daily chart:
> Green and red bands show consolidation around 2800, which is about double the stock's pre-Covid price.
> Recent candles exemplify "sell the news" after earnings.
> Since stochastic %D has not curved down yet, there is time for a good entry, if at all.
> Dotted support line offers a price target.
Trade notes:
> I will be monitoring daily and 30m charts for a good entry.
> I am interested in the 18Mar 2300 strike and 18Feb 2600 or 2500 strike.
> I will use the 5 and 30 min charts for day trades with weekly expiry (Wed-Fri when options are cheaper).
> Option prices will fluctuate with IV and VIX changes, and theta decay is very real. If price chops or I lose confidence in trade then I will quickly trim or exit puts.
> As markets may drop and rise before 18Mar, I may sell all puts and then buy again on a new setup.
Both Charts:
> White rectangle on weekly, starting 19 July 2021, is expanded on daily
> SMA's - 10 in orange, 20 in green, 50 in blue, 200 in purple
> RSI testing 50 - now will it hold or break lower?
> Stochastic - watch to see if %D (orange) turns down
Weekly chart:
> I rarely use Fibonacci, and it is fascinating that 0.382, 0.5, and 0.618 retracement levels match up with areas of consolidation (now supports).
> Dotted lines with numbers indicated retracement prices.
> 10sma is below 20, while price bounced up from 50sma to 20sma resistance.
Daily chart:
> Green and red bands show consolidation around 2800, which is about double the stock's pre-Covid price.
> Recent candles exemplify "sell the news" after earnings.
> Since stochastic %D has not curved down yet, there is time for a good entry, if at all.
> Dotted support line offers a price target.
Trade notes:
> I will be monitoring daily and 30m charts for a good entry.
> I am interested in the 18Mar 2300 strike and 18Feb 2600 or 2500 strike.
> I will use the 5 and 30 min charts for day trades with weekly expiry (Wed-Fri when options are cheaper).
> Option prices will fluctuate with IV and VIX changes, and theta decay is very real. If price chops or I lose confidence in trade then I will quickly trim or exit puts.
> As markets may drop and rise before 18Mar, I may sell all puts and then buy again on a new setup.
Komentarz:
News of insider selling this morning. Many insiders have sold their stocks over these past few months. These blowout earnings may also be peak earnings because as credit and liquidity tighten over the next few quarters, and rates rise, corporate profits will shrink. I did not get my entry in first 30m and stochastics on 30+5 min charts say "wait" to buy puts.
Zlecenie aktywne:
When price came up to 2780, I bought puts - 18Feb 2600, 18Mar 2300
Zlecenie aktywne:
Still holding puts, as I have time to wait for a reversal. 1840 area is where I am buying puts again, based on daily and 30min charts.
Zlecenie zamknięto ręcznie:
I sold my swing puts on 11 Feb, Friday with a profit and also had profitable day trades as the market dropped. Rather than holding over the final weekend (more risk and huge theta loss) I will look for a new trade entry.
