+2 DIS 20 DEC 19 144 CALL @3.80 ; Trading with 0.21 of extrinsic value, well in the money.
STRATEGIES: Using DIS day chart:
- The 20/50 Mean green cloud contracts, and we can look for a new expanding cloud to form for a long.
- The bounce signal appearing somewhat near the mean (after the reversion on the bump).
TACTICS: The plan in terms of stock price:
- STOP is price < 144
- TGT1 153 scale; TGT2 157 to exit
- Trail option price to Break Even once stock price > 150; OR consider scaling as green cloud becomes large
- We may let the and 20/50 mean together take us out technically for whatever we get win or lose.
- Not always do mean reversions get back to the mean in view.
- Depending on figuring, it could have touched some mean perfectly, but it isn't important.
- We look for the signals near the mean as we consider the mean elastic or one of many possible means.
Will update in comments,