Call debit spread in MOMO

29 ago 2017

Chinese ADR's have all been curiously strong lately, so I am adding some bullish delta on a pullback. Not sure if Sept/Oct will be as bearish as normal, but I doubt it since it seems they have all been shaken out(sellers) I have watched the Simpler Options guys trade this and now also a rec. from Navallier. I see some support levels that may line up with the 200 moving average and will hope for a bounce. Premium selling has been miserable and with implied volatility rank at 13% I decided to buy the 35 strike and sell the 40 out until January expiry for 1.71 debit because I usually need a lot of time to be right. This is in a reg-T account so I am putting on risk with the hopes of making profit. Will sell it for 2.50 ideally but will settle for less within the first 10 days or if my assumption should change.

30 ago 2017

Nota

Closed manually. Can't seem to hold a long here for the life of me. Sold for 2.00 even and after fees gets me 14% sounds better than a happy meal but in reality was just 25 bucks. Could be that I know I shouldn't be buying options.

25 set 2017

Nota

Looks like failure to launch.....LoL. So here we are on another down day and even with NK tensions and tweetstorms, no correlated selling (no real fear). I will take another shot at this with the same 35/40 call debit spread out til Jan. 18 this time for $1.61. The implied volatility rank is still 13ish and you will notice when I buy options I am never buying in the 45 days to expiry "kill zone". Trying to be right on a timer is too difficult for me and I will manage this one close to the chest, like the last time. If MOMO touches this 200 day moving average again I will not touch it or may consider trading it to the downside instead.