24oct
alright meow, put your helmet on for this one. the morning after earnings on the 21st with the stock down 30points i sold a Nov06 455 short Put for $5.00 credit. about 19 delta. 2 trading days have passed with friday being green and i noted a couple of the TA wizards on my stream noting the hammer and being short term bullish. it does seen that the sellers have shot their wad. i have been looking for an entry for a Jan2022 long call in order to get back into diagonal spreads. the short put is at $4.50ish now and the stock is near the bottom of the bollinger band and as you can see just from this small chart below that the stock with a few exceptions, does not stay at the extreme edge for long. on the bottom extreme anyway.
so here is what i will be looking at:
first will look at buying a Jan2022 long call. id like at least a 70 delta so i will start at the Jan2022 430 call (70 delta meaning option moves about 70% as much as the stock). the 430 call is at $125ish ($12500)
then - im in the nov06 opex week on the put, so staying with that opex with the thesis that the stock starts to rebound and work towards filling the gap. i will look at a Nov06 495/515 call ratio (1x2), thats buy a 495, and sell two 515s for near zero . just the ratio spread profit range at opex is 495-535
will review after market opens on monday
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