CWH Bearish inclined naked calls 17 June expiry
Updated
- Whats The Plan/Trade/Thought
- CWH is part of the Recreational Vehicles sector, that came out of my shortlist of companies with medium level volatility in the past month
- Across the sector there is a bearish alignment which is important
- I do expect some volatility with an upwards movement as price across the markets might stabilise from the past 5 weeks of back to back drops
Risk Mitigation - Very clear S&R lines. If price breaks S&R 1, I will have to close the trade.
I Feel - I feel confident about this trade as I will be using my S&R lines as a risk mitigator.
Imagine Yourself Taking The Other Side - With the bearish price action from the past 5 weeks, selling puts would be too risky and almost as if you are trying to guess the bottom
Look For New Information - Dividends is happening on the 13 June. But I have not seen this event result in volatility
How Do I Feel Now - Good, I’m clear
Trade Specs - Sold 236 Calls @ 0.25 - Strike 34
- 23.6% to Strike
- BP Used 66.9K
- Max Gain $5,900
Trade closed: target reached
Yay!
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