My trade idea is as follows
Observations
- Google is a tricky one. Although most of the market declined, Google gapped up due to its strong earnings. However, it swiftly "filled the gap". I believe that from now on, it will follow the general market - down.
- 100MA was broken a few days ago. If it weren't for the earnings, it would have been broken and head towards 200 MA.
Proposed trade
- Start with a bear call spread with the short leg at 1750
Risk management
- Monitor how the trade goes. If it continues to go down, add a put credit spread at 50 points below the 200 MA level
- If the stock moves higher, then we can roll the call legs 100 points higher.
Profit management
- Take profit at 70% of max gains
- Monitor how the trade goes. If it continues to go down, add another bear call spread 50-100 points below.
Observations
- Google is a tricky one. Although most of the market declined, Google gapped up due to its strong earnings. However, it swiftly "filled the gap". I believe that from now on, it will follow the general market - down.
- 100MA was broken a few days ago. If it weren't for the earnings, it would have been broken and head towards 200 MA.
Proposed trade
- Start with a bear call spread with the short leg at 1750
Risk management
- Monitor how the trade goes. If it continues to go down, add a put credit spread at 50 points below the 200 MA level
- If the stock moves higher, then we can roll the call legs 100 points higher.
Profit management
- Take profit at 70% of max gains
- Monitor how the trade goes. If it continues to go down, add another bear call spread 50-100 points below.
Nota
The short put, given the volatility, should be set at 1360
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Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.