OMED Earnings Play
First on my Bullish list for Tuesdays watch for me, OMED. I traded calls on this past Friday. Calls were cheap bought and sold 100 contracts for a quick $300 profit. Then I noticed a bit of chatter talking about swinging it that lead me to this for next week. Rationale: Massive volume spike out of the blue, stock has been consolidating since December, then broke out Friday, IMO confirms potential merger big news is coming. I exited my Calls when I saw that they were holding the price down for the close. As we know, Cucks pinned the price below the .9100 strike price for Fridays close to burn the OPTIONS premiums. By doing so, this then led me to think it should pop on Tuesday's open and they will let it run its course. Also, earnings are coming up March,10 so momentum should remain strong until then. OMED moves with the sector ETF IBB so eyes will be peeled to sector for further movement.
Strategy and speculation: IMO price continues to the upside, with 3 intermediary intraday levels of resistance shown on my chart, a quick moonshot to the upside in the $1.50 range will be the immediate target, assess and evaluate then to see if continuation is a possibility. My plan is to take an initial position buying the 3/15 expiry Calls $2.50 strike if the volume is there and if support holds at .8619, price on Calls is around .03 so I’m targeting that price initial position 100 contracts. Risk is limited so I’m OK to hold if an intraday sell is not favorable also can add to the position on then climb up with the ultimate bale before the options expire. I have no interest to hold until expiration and OK to sell at any time to lock in profit and take the win. Last I checked Call volume was at 55 and Theta was at .02, open interest at 984. Chartwise it closed above the VWAP and 13 day EMA and I think that red candle at close would have been if they wouldn’t have kept the price down. Main support is at $.8619 a break just below there would stop me out.
Full Disclosure: At the time of this writing I do not have a position in OMED. This trade idea is for educational purposes only, I am not a financial advisor, do not follow me or anyone else for that matter blind into a trade. No one loves your money as much as you do, do your own due diligence and seek professional financial advice when necessary.
Strategy and speculation: IMO price continues to the upside, with 3 intermediary intraday levels of resistance shown on my chart, a quick moonshot to the upside in the $1.50 range will be the immediate target, assess and evaluate then to see if continuation is a possibility. My plan is to take an initial position buying the 3/15 expiry Calls $2.50 strike if the volume is there and if support holds at .8619, price on Calls is around .03 so I’m targeting that price initial position 100 contracts. Risk is limited so I’m OK to hold if an intraday sell is not favorable also can add to the position on then climb up with the ultimate bale before the options expire. I have no interest to hold until expiration and OK to sell at any time to lock in profit and take the win. Last I checked Call volume was at 55 and Theta was at .02, open interest at 984. Chartwise it closed above the VWAP and 13 day EMA and I think that red candle at close would have been if they wouldn’t have kept the price down. Main support is at $.8619 a break just below there would stop me out.
Full Disclosure: At the time of this writing I do not have a position in OMED. This trade idea is for educational purposes only, I am not a financial advisor, do not follow me or anyone else for that matter blind into a trade. No one loves your money as much as you do, do your own due diligence and seek professional financial advice when necessary.
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