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Put
Buying QS 16 APR 21 30 PUTI'd like to see price hold this resistance on the daily time frame.
If price breaks and closes above $65.68, then I'll close the position and salvage what I can.
I expect price to continue to move lower and check $28.
Why did I buy puts with a $30 strike? Because price has already checked the $38 price level annotated by a check mark. I think price could push further down to the base of that price level (annotated by an up arrow) around $30 within the next 30 days.
Double top in VIACVIAC announced new shares will be issued diluting the current value of their already overvalued shares. A double top has formed on the chart. Correction ahead as there are multiple options for the underwriters to buy more shares after the initial offering, meaning the dilution could continue.
When a company sells its shares, it's essentially recognizing its share price is higher than it should be and they are taking advantage of it. Take profits and buy puts to take advantage on the investor end.
Bearish MACD cross appearing on the daily chart.
"The company is offering $2 billion of Class B common shares and $1 billion of a preferred stock that is convertible into the Class B common, ViacomCBS said Monday. The shares are the company’s nonvoting equity. The newly issued stock will start trading on March 24, Bloomberg News reported."
"Morgan Stanley and JPMorgan Chase & Co. are managing the offering. ViacomCBS granted them options to purchase up to $450 million in additional shares."
VIAC looking juicy for a short/putI don't own stock anymore, I, unfortunately, sold once it hit its fair value estimate of $57. If I owned stock I would either sell it or use some of it to sell calls against to take advantage of the inflated options premiums by collecting that weekly as it goes down.
As you can see the separation between the moving averages and the stock price has gotten into nose-bleed territories, the RSI looks grossly overbought for an extended period of time. This party has to come to an end. Not saying this will crash like the overcooked QS did but I would say if you don't have any exposure an in-the-money put option would be nice. ITM put options will have strikes above the current stock price and they have the trade-off of being more expensive but having a higher probability of profit without depending on a severe decline.
Looks to be overbought to an alarming level, look out below.
Facebook dropping to 233-240If you look at the day chart there isn't a single high volume gap that isn't filled. Facbook has been consolidating for about a week now between 255-266. more often then not the consolidation follows the trend that lead into it. this would cause it to push down in price to the 244 support levels. if it breaks that then it will continue to fall and fill its gap between 235-243.
Main curve ball being the stimulus check tho
SIVB put spreadDecent earnings, still above 70 RSI, watch for a slight dip on monday but as long as it holds $550 support, I think it should continue to trade in this range and up. 2/19/21, 460/450 put spread @2.70 hoping to swing for a few weeks. Looking for a $1.60 exit.