Disney Short - Rejection of EMA's / Credit Spread TradeI am looking at entering a short position on Disney (DIS) via a call-credit spread because of a few criteria that are present within the chart. First and foremost, on the daily chart, there is a consistent downtrend present since March 8th of this year, characterized by constant rejections of the 10, 25, and 50 exponential moving averages.
I will be selling to open a vertical credit spread on the call side which will put theta in my favor and gave me negative delta. As such, my breakeven will continuously rise, and by expiration, I will hit full profit as long as DIS is anywhere below $180.00 / share.
The breakeven point throughout this trade is the blue ray that I've drawn from todays date up until my contract expiration, which is on July 16th.
STO - July 16th, 180 C
BTO - July 16th, 185 C
Greeks:
Delta: About -$14.00 as of 06/23/21
Theta: (Working for me) - $1.60
Stochastics are showing signs of life to the positive side, which is fine as I am scaling into my short position. Not particularly worried about a massive move upwards.
I am looking for a price target of $167.00-ish, but will take profits earlier if the need arises.
I will stop out above $180.00.
