XME rocket ship refuel completedXME should see pretty strong upward bias in the next 40-60 days and should make it to the 40-45 region. I will be taking position on any pullback which may materialize in the next few days.
As additional proof
1. We bottomed at a good fib support, and then made a nice bottoming formation of bottoming exactly at the next support level (as in "Automatic supports" related)
2. There are two fractals which are similar to this bottoming internal state leading to 16-30% gains over the next 40-60 days respectively.
a.
b.
Of the two (a) bottomed at 200 day sma, and therefore I classify it as the better match. So I expect the target to be closer to 45 than 40 but that remains to be seen
XME trade ideas
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: $90.00
% Return: 35.4%
I will be using the PMCC model, as it will allow a greater return, and less pain if wrong... also the possibility to continue writing calls for 6 more months
XME call spread option trade$XME is a weird one, ill be honest. on the Weeklies, the trend is up, but on the dailies its starting to look very top heavy. MACD is signalling a sell, The one bright thing here is that we are near some major support, last attempt bounced this baby for 12 days. A break below this lever will open up a clear move to the 27 handle... The idea here is to Sell a Call Spread in June -32/+35 with mid-price of 45 cents. Thats an ROI of 15% for a 59 day hold