Long
$SIX Sig Flag - Breaking out of squeeze.
Updated
The manageable way to setup option position for such a breakout IMO is.
Get in with a Debit Spread, in this case Call Debit Spread (Buy 16, Sell 20 strikes) (Buy open 16 and Sell open 20) If the breakout runs greater than $20, you can take the profit. If the breakout turns out to be fake, Roll the sold 20 strikes to 13 strike. I.e., Buy to close the 20 strikes and Sell to open 13 strike.
By doing this, you may salvage a losing trade, if managed adequately.
Get in with a Debit Spread, in this case Call Debit Spread (Buy 16, Sell 20 strikes) (Buy open 16 and Sell open 20) If the breakout runs greater than $20, you can take the profit. If the breakout turns out to be fake, Roll the sold 20 strikes to 13 strike. I.e., Buy to close the 20 strikes and Sell to open 13 strike.
By doing this, you may salvage a losing trade, if managed adequately.
Note
That was manageable, definable and profitable. Once you grasp the basics of Option. Trades like this will net you 20-40% gain day in and day out with a probability of atleast 69%. That is a successful strategy if the losers are managed appropriately.
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Struggling to get past that multi year resistance. Still want to be in the trade with tied capital? Thats the question you have to ask.
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I m Out.
Uday C Santhakumar
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