Options-strategy
Is this the rebound of the metalsquietly the XME has broken out of a 2017 lull, and with that we go long..
a few ideas how to play this
1. Poor Mans Covered Call
2. Sell puts..
Both situations seem decent, but if you look at the possibility of being wrong, the PMCC offers the least amount of pain and suffering. Lets explore
if selling puts, using Delta30... we will be getting $53 and using 989 in margin for Feb 02 34 Puts... The key here is that 34 is the prior resistance/ now support...
if buying a PMCC
Sell 1 contract of XME 2018 19-JAN 36.00 CALL @ $0.45
Buy 1 contract of XME 2018 15-JUN 34.00 CALL @ $3.00
Current Stock Price : $35.22
Break Even #1 : $34.58
Break Even #2 : $40.25
Total Requirement: $254.50
Put Guarantee Price: $0.00
Max Risk: $254.50
% Max Risk: 100.0%
Max Profit: $90.00
% Return: 35.4%
I will be using the PMCC model, as it will allow a greater return, and less pain if wrong... also the possibility to continue writing calls for 6 more months
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.
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
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