Options-strategy
New weekly demand levels created on EOG Resources american stockNew weekly demand levels created on EOG Resources american stock around 97 and 85.75 respectively with monthly demand level in control and in a clear uptrend. Long bias at new imbalances
Discovery Financial Services DFS buy setup at weekly demand zoneAmerican Stock DFS Discovery Financial Services has a clear long bias. Price fell short of retracing to this weekly demand zone around 57 area. Brand new weekly demand level, that imbalance around 59.55 has a very strong and explosive bullish impulse. New demand levels are being created, supply levels are being eliminated. Longs at weekly demand zones for a long term investment.
Crude Oil Short Term SELL (15 Hours)Looking at Supply level on the D chart. Only 15 hours left in the contract. OTM (Out of the Money) short position. Risk is 36 to make 64 per contract.
Tesla Coil (Ha. Ha.)Some volume came in this morning for a nice green day, keeping this coil formation nice and tight. I'm in october 6 calls in anticipation of the semi truck announcement (which is said to be happening this month). Still early, may not break the coil to the upside yet, but I like my chances with the bull market still strong. Tomorrow I'll be watching for a weak open to risk $50 on sep 8 calls. If it pops out of the coil tomorrow, that'd be huge potential gains. This is becoming my favorite play. I missed the last two fridays when BIDU made 20x and 45x gains, not gonna miss tomorrow if it happens in FB, NVDA, BIDU, NFLX, or TSLA. Watching closely
Wheat flat to upI have a big picture tool I use that has been very good to me and it is now indicating shorting puts in wheat will be a good spot to take advantage of a sideways or climbing wheat prices. I will trade the 31 DTE options and will move down to the 30 delta strike put to give it a bit of wiggle room. Not a big trade but not much buying power is used either
SI - VSLV has risen, so Strangle at 14,75 and 21,25Sine VSLV has risen, I openend a strangle at 14,75 and 21,25 for a runtime of 70 days (October 2017). Both ends end up being delta 5 with premium of 230 $ each.
CL -StrangleSince the CL is circling between 55 and 42 in the last months, I create a new strangle position with 66 day runtime until mid October, selling lower side at 38.5 for a 200 $ premium and higher side 57 for 170 $. Volatility has risen in the last days, which is my main indicator for taking a position.
long / short TOWNTOWN
Looking at the cyclical life of TOWN , it looks like the stock may have some room to grow. I would say advise buying short-term call options at close to price strike price. The company does not perform as well on the balance sheet side. I would advise executing the right to buy stock when the option contract expires, only to minimize the risk of the option by turning it into a long position. If more information comes in suggesting that the stock will under perform, I would minimizing the long position, and buying short positions with some put options.
The opinions expressed are as of August 4, 2017, and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Diego Alvarez to be reliable, and are not necessarily all inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by Diego Alvarez. This material may contain ‘forward-looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Dependence upon information in this material is at the sole discretion of the reader. This material is intended for information purposes only and does not constitute investment advice or an offer or solicitation to purchase or sell in any securities, or any investment strategy nor shall any securities be offered or sold to any person in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. This disclaimer informs readers that the views, thoughts, and opinions expressed in the text belong solely to the author, and not necessarily to the author’s employer, organization, committee, or other group or individual. Diego Alvarez doesn't have any affiliation with Provectus Capital, nor receives any information, insight, or forecast, and does not have any communication with the firm.
10% ROC on this Options trade IdeaXOP seem to be running into consistent resistance at the 38$ level... Last attempt up stalled around the $36 area. This trade idea is for June monthlies Option Trade.
Sell the 38$ Call, and if you want buy the 41$ call to make it a $300 risk play.
The premium you will get should be around $30 per contract... a decent 10% ROI.. for less than two months.
Neutral trade on DIA (double double)DIA IVR 33.8
Sold the 211/215/201/188 Iron condor
for $4.70
Target 50% of credit received
Ratio 3x the calls spreads for every 1x Puts spreads
The trade:
Sold (3x) 211 Calls
Buy (3x) 215 Calls
Sold (1x) 201 Put
Buy (1x) 188 Put
for $4.70
Max profit $470
Max loss $830
ITCI - Breakout Long from $13.37 to $16.73 & 12.50 Call options ITCI was in our watch list for a while, and now it seems ready to go. Good insider buying from10% owner. We think it has Right now it is testing MA 200 resistance & it if can break above it can go much higher.
On the option side we would consider August $12.50 calls @ $1.50 and November $15.00 calls @ $1.20
* Trade Criteria *
Date First Found- July 20, 2017
Pattern/Why- Breakout Long trade
Entry Target Criteria- Break of $13.37
Exit Target Criteria- $16.73
Stop Loss Criteria- $11.6
Please check back for Trade updates. (Note: Trade update is little delayed here.)
IWM Iron CondorPlaced an Iron Condor synthetic strangle on IWM with a 10 point sell side spread to collect .70 cents in premium. Will be looking to take the trade off at 50% max profit as soon as possible. In the event that the premium comes in faster, withing the first 10 days of the trade I will be looking to take trade off at 30-40% Max profit then redeploy.
Brazil went down big, let's sell premium (Big lizard)After some negative news about bribery in the government the Brazil's ETF (EWZ) got killed at the open with a 18% down move.
With the Implied volatility rank of the stock at the high's of the last 52 weeks(100%) it means that buying options is going to be expensive, in other words we are going to be selling overpriced options.
Betting that this is an over reaction and wanting to take as much credit as possible, I decided to sold a big lizard (Straddle with no upside risk) to get a nice premium.
The trade:
64 days to expiration
Sold the 33 Calls
Sold the 33 Puts
Buy the 36.5 Calls (no upside risk)
Collected 3.95 per contract
Target price will be at 25%
WPM: Sell OTM puts for 9% p.a.On Friday, June 16, we successfully closed our previous short-put trade on WPM (see previous post below).
Today WPM is showing continued signs of weakness, in an otherwise strong market. It is currently trading towards the lows of its trading range. It could continue to show weakness if the broader market continues its journey upwards. However, in the context of a much anticipated market correction and rather high equity valuations, any market correction should help push safe haven assets (precious metals) upwards.
STRATEGY: Sell WPM 11% OTM puts on the September expiry
RISK: Get exercised at the strike and end up long the asset 13% below current price
REWARD: 9% annualized yield
SELL WPM 09/15/17 $17 PUT = $0.40/SHARE (8.81% annualized)
Depending on your risk appetite, the $18 strike and the Jan 19, 2018 maturity could also be interesting.
Targetting sub $2,000 on Bitcoin, BTCI am a big believer in the crypto-currencies. I am a big believer that these currencies are going to go higher in a big way. Much higher. I am also a very realistic person in that during the journey higher for BTC and ETH, the currencies will not be heading higher in a straight line. Instead, there will be moments the currency goes up and down, but over a very, very long period of time will go higher.
So, given the concerns I had yesterday , and within the context of a move higher over a long period of time, I went long a "lottery ticket
last night. The option price is still below the break-even level. But, given more time and the momentum the market has, this will go. After that, if the momentum dies down, I can go long spot for .50 size ratio 2:1 option to spot. That way, if the market continues lower, my options cover my losses and I am profitable. If the market continues higher, the option goes out of the money, spot goes into the money.
Easy. Really.
