TWTR Bullish TradePrefer to buy the stock or Buy call spreads unless if there is a good premium in put side. Stop 13.80 take profit 22.50$.
Take care about Theta ;)
CALL
Follow Up On MagicJack no 21 minute positive bar opening.Our candidate last night had 2 indicators but it had two problems.. It was in the daily cloud and it was right under the 200 DAY MOVING AVERAGE. As with all our candidates and included in our book of the rule of entry, you must have a positive opening candle to enter into a possible candidate. I like a good, strong 21 minute bar some other people use 13. Thus, today we got no entry into our candidate, it's very important you follow all the rules for entry, exit and stop losses which appear on our book Pennies to Thousands.
DJX / DOWI POSSIBLE SHORT TERM MOVEMENTI think its possible for a movement to the upside in the short term, I have multiple indicators suggesting so. Support level at 169 and my target is 172.
IWM Russel 2000 ETF after Market ReviewFor me this looks like a Bear-Flag in the downtrend. The Volatility Stop at 103.50$ is like a WALL.. If we break through Support at 100$ the next suppport is at abbout 94$. A Bear-Call-Spread above 108$ could be a good Idea.
Pair Trade - Short CNQ and Long XLEThis is a pair trade idea based on CNQ/XLE pair cointegration. My calculations show that these two stocks diverged by more than 2 standard deviation and, based on mean reversion, should come back to mean. This pair's rolling mean is 28.3 over the last 280 trading sessions. The current value is 23.6 and one standard deviation is 1.8. The trad can be done by shorting CNQ and going long XLE in the proportion calculated through beta. Alternatively, it can be entered as two credit spreads - bear call spread on CNQ and bull put spread on XLE. This is how I will be entering this trade on Monday when the market opens - $CNQ $22/$24 Feb 21 bear call spread for $0.5 cr and $XLE $57/$55 Feb 21 bear put spread for $0.6 cr. Will be watching the bear call side and adjust if necessary.
AMZN post earnings pre MarketIm expecting AMZ to Bounce of from 580 and than heading toward 200 SMA. Maybe Bear-Call-Spread for next week?
High - Low Bollinger Bands These work better than the standard Bollinger Bands for setting extreme ranges.
What I use these for is to use an oscillator to find an buy / sell signal then take that to the H L Bollinger bands and mark the spot. Most of the time, you will find that the price does not exceed this spot for the duration (length) of the H L Bollinger bands.
This makes them good for doing Credit Spreads such as Put Vertical Spreads and Call Vertical Spreads. Since the price will normally not exceed the bands at the extreme point, the trader can profit from the time decay and other factors.
WFT COVERED CALL IDEAWith covered calls, I look for cheap underlyings with high implied volatility rank/high implied volatility and setups that will produce at least a 10% return if called away at the short call strike.
WFT fits the bill, with a rank of 72, an implied of 84, and a 13.06% return if called away at the nearest out of the money strike.
Here's the setup:
Buy 100 shares WFT at 8.52
Sell 1 Feb 19 9 short call
Entire Package: 7.94 ($794)
Max Profit: (If Called Away at 9) $106
USD/CHF Over Extended Cypher PatternAn over extended Cypher pattern was created due to the news. The last hour retrace on Friday was mostly caused by traders closing out their positions before the weekend market close. There are two ways you could trade this while placing your stop just below support:
1. Take a long position upon the opening of the market.
2. Wait for a double bottom and take a long position there. (less risky and better R:R)
For you binary option traders I would suggest option 2. A call option for 3 to 4 hours also a end of day call should also be ITM.
Plan your trade, trade your plan and good luck!
$GPRO We cleared some key levels but a bigger move is coming$GPRO We cleared some key levels but a bigger move is coming. Notice the key levels we have passed and every time it has lead us to the next key point. I have made a killing the past 3 days trading the weekly OTM calls. I still have calls expiring Friday and calls expiring 1/2/15. I also grabbed 10 of the 1/17/15 $50 puts for $.43 just before the close today. I believe that if we do not continue to push through this key level we are going to head towards $53 in a hurry. I am overall long, but i am not going to be surprised to see a massive pullback.
DAL Long - Bull Flag ConsolidationThe idea here isn't very difficult to understand. DAL has made a run up from $35.51 on August 8th, where we saw a bounce off the 150EMA, a personal favorite area to get long for me, especially looking at the weekly chart for this. Anyways, from the top down:
1) Bullish RSI Holding 60 Support
2) Established Uptrend - Long Term
3) Bounce off 150 EMA
4) Long $4.46 move straight up through all EMA(8/21/50), through resistance, and consolidating above.
5) Broken Downtrend
6)Weekly Uptrend Is Beautiful - Right At EMAs (8/21)
(My Screen Is Too Small To Pull Up Both Simultaneously)
Cons:
1) MACD Is Positive
2) Momentum Tapering As We Consolidate
I like the chart, and like what I see. I'm getting long here. Possibly with a covered call, but maybe something else. Not sure what other plays are available with such low volatility, but the verticals and diagonals are getting old.
Resistance AreaJust watching PA in this area. PA is Beginning to push up against both a down TL and resistance area. If price breaks through it may continue move up toward the recent 101 high. If it breaks lower look to the recent low where buying volume was very high. I have purchased a Jan.15 call w/a strike @ 100. w/ the holiday season approaching I believe PA will get the Momentum to Approach the 100 high.
