BA - powerful RSI signal for swing calls - 9/18, 220 strike

١٠ أغسطس ٢٠٢٠

The directional volume (DMI) shows average volume has been low and the green line has just crossed up over the red, indicating a rise in buying.
Today shows a nice follow through after a move over the 20sma and two days of consolidation that stayed over the 10sma.
Most importantly, RSI crossed over 50, came back to test it, and today is higher again. This along with a trade over the high from Aug.5, trigger calls.

١١ أغسطس ٢٠٢٠

تم فتح الصفقة

Sometimes when I place a swing trade I also see a good day trade opportunity. Yesterday I bought 9/21, 220 strike calls for $3.72, which I am holding.
I also bought weekly 180 calls for $3.50 and sold most of them this morning for $10.10, and the rest sold at my $7.05 stop limit. This RSI-50 trigger is a very strong signal. RSI crosses 50 line, then retests it, and crosses back over 50 line. Stock must also break the high for calls, or the low for puts, of the candle that created the initial 50 line cross.

١٢ أغسطس ٢٠٢٠

أغلقت الصفقة: تم الوصول لوقف الخسارة

My stop on the Sept. calls triggered at $4.10. I did not want to take a loss on this position.

١٢ أغسطس ٢٠٢٠

ملاحظة

IMPORTANT - The RSI signal and trigger are still valid. In order for it to be void, stock price has to break the low of the trigger candle (8/10).
With options however, one also has to consider IV and theta decay, so I chose to preserve my capital by selling my options and now I can buy calls at a lower price when stock is at 173-174. The trigger candle's low is 171.33, so this also greatly reduces my risk.

١٢ أغسطس ٢٠٢٠

تم فتح الصفقة

I set a limit buy that was triggered as price fell today. I now have a small position of 9/18, 210 strike calls bought at $3.60, and I will exit if stock price falls below 171.33.

١٨ أغسطس ٢٠٢٠

أغلقت الصفقة: تم الوصول لوقف الخسارة

BA traded below 171.33, so I sold my puts for $2.22. Now I am looking at swing puts down to 162, maybe 154.