Options Trading: Phillips 66(PSX) Buy Call $100 Exp: 7/19
Updated
Understanding The trade:
As an options trader my goal is to identify trend change and utilize a breakout strategy to leverage profit off of major trend changes with minimal risk. Even though this contract does not expire till 7/19 I will be looking to take profit by early july as the rate of decay factor starts to come into play as the contract approaches expiry. This should correlate nicely with the Fib Retracement lvl of .786. If you have any questions please feel free to comment below and follow. Thank you and trade safe.
Reasons For Trade:
• Bounced off the Dec 19' low of 78~80 lvl
• Broken downward channel (1D chart Apr 1st -June 3rd)
• Broken RSI Channel
• RSI Overbought > 30
Trade Parameters:
• Broker: Robinhood
• Cost For Entry: Free
• Contracts: 20
• Entry Price: .06
• Risk: $120
• Reward: $360
• ROI: 300%
• Risk/Reward Ratio: 1:3
As an options trader my goal is to identify trend change and utilize a breakout strategy to leverage profit off of major trend changes with minimal risk. Even though this contract does not expire till 7/19 I will be looking to take profit by early july as the rate of decay factor starts to come into play as the contract approaches expiry. This should correlate nicely with the Fib Retracement lvl of .786. If you have any questions please feel free to comment below and follow. Thank you and trade safe.
Reasons For Trade:
• Bounced off the Dec 19' low of 78~80 lvl
• Broken downward channel (1D chart Apr 1st -June 3rd)
• Broken RSI Channel
• RSI Overbought > 30
Trade Parameters:
• Broker: Robinhood
• Cost For Entry: Free
• Contracts: 20
• Entry Price: .06
• Risk: $120
• Reward: $360
• ROI: 300%
• Risk/Reward Ratio: 1:3
Trade closed: target reached
Trade Parameters: • Broker: Robinhood
• Cost For Entry: Free
• Contracts: 20
• Entry Price: .06
• Risk: $120
• Reward: $80
• ROI: 80%
I ended up adjusting my strategy to 80% ROI as TP per trade and have noticed an increase in long term growth.
Happy trading!!!!
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