RIGL trade ideas
RIGL - Downward channel breakout long from $3.11RIGL - Text message alert today that it looked good at $3.11
$RIGL Perfect level 1 pull back to $3.22, enter in at 3.22-3.20Ticker - $RIGL
Date - 10/2
Entry - 3.22
Target - 3.40 - 3.60
Exit - 3.15
W/L Ratio - 5%-11% WIN / 3% LOSS
Note - Enter trade on the pull back
Play save take the quick buck on first target
Will RIGL breakdown completely?From what I have learned, the Triangle is a continuation pattern, in this case, a sign to short the market.
You can look at it this way: the bulls are trying to escape the triangle to the top, but the bears are in control and push them back to the bottom. Then the bulls try again, but some bulls became bears in the mean time, and so the bears are getting stronger, and with every failed contempt, the bulls are getting weaker and weaker until even the last bull turns into a bear. In the past it usually took 6 bounces. Ant thats the point where the support breaks. And then we usually have a move, as big as the triangle is at its widest point.
So I keep watching the epic battle on this stock, and once a daily candle closes below the support, I will take an entry.
$RIGL descending triangle 1hr chart$RIGL descending triangle 1hr chart
Pattern will be confirmed with a drop below $2.72/share
RIGL Bullish SwingRIGL has been rallying since February and is near a consistent support line and could rally from here. RSI and PPO are near past support levels. Price has been seeing support near the 25 day MA and today its low was only 2 cents below it and it closed 11 cents above it. The trendline it is near is also the 2/3 line.PPO often goes a little below its MA before seeing support, that could be the case here.
RIGL - Flag formation Long from $0.90 to $3.13 & higherRIGL broke out of a downward channel, and now seems forming a flag formation. In hourly chart it seems forming a pennant formation. In breakout of both bullish setup it can go $3.13 & higher
* Trade Criteria *
Date first found- March 2, 2017
Pattern/Why- Flag formation
Entry Target Criteria- Break of $0.93
Exit Target Criteria- $3.13 & higher
Stop Loss Criteria- N/A
Please check back for Trade updates. (Note: Trade update is little delayed here.)
RIGL COVERED CALLThis ranks up there as one of the more ridiculous covered calls I've done. I say "ridiculous" because I'm selling the short call right at where current price is and dramatically reducing my cost basis at the same time (the share price line is depicted at 2.40 so that the stock price line/short call line don't overlap).
Metrics:
Buy 100 shares RIGL at 2.51
Sell Sept 16th 2.5 short call
Entire Package: 1.76 debit (i.e., your cost basis in the shares is 1.76/share)
Max Profit: $75/contract if called away at 2.5 (ROC 42.6%)
HIGH IMPLIED VOLATILITY OPTIONS (8/28)One of the first things I do when searching for either covered calls to do or just general premium selling plays is to look for high implied volatility underlyings with relatively decent expirations, strike widths, and fairly tight spreads (i.e., having weeklies is best with $1 wide strike widths and a bid/ask that is no more than .15 wide from top to bottom is ideal, although I'll bend those rules from time to time; $TWLO's a good example of this, nasty wide spreads, but premium too juicy to pass up).
After I identify those, I start looking at actual plays to see if I can make something out of them, looking at all possible premium selling strategies -- short nakeds, short straddles/strangles, credit spreads, iron condors, etc.
Here's today's lists of stocks, sector exchange-traded funds, and broad-market exchange traded funds, ranked by their implied volatility percentage:
Stocks
RIGL 219 (biotech) (in a trade), NVAX (biotech) 185 (in a trade), GSAT (telecomm) 152, TDW (O&G) 117, SDRL (O&G) 93, MX (semicon) 78, CHK (O&G) 78 (in a trade), GLNG (solar) 76, CLF (mining) 75 (in a trade), WLL (O&G) 73 (in a trade), CDE (mining) 72, HL (gold/mining) 70 (in a trade), GNW (financial) 69, LC (financial) 65, VRX (biotech) 62, AUY (gold/mining) 60, AMD (semicon) 60, NE (O&G) 60 (in a trade).
Sector Exchange-Traded Funds
GDX (gold miners) 42, XME (mining) 38 (in a trade), XBI (biotech) 36, XOP (O&G) (33).
Broad Market Exchange-Traded Funds
EWZ (Brazil) 34.6, EEM (Emerging Markets) 21.4, IWM (Russell 2000) 18.5, QQQ (Nasdaq) 15.7, EFA (Word, ex. US/Canada) 14.4, SPY (S&P) 14, DIA (DJIA) 13.5.
Notes: The $RIGL play posted here is the play I'm in. It's not currently workable except possibly as a naked 2.5 short put play due to strike width -- 2.5, 5.0, etc.
