METHOD: Long PAYPAL {price at entry 104.93} via: +2 PYPL 20 DEC 19 102 CALL @3.40 ; Trading with 0.50 of extrinsic value, with decay only threatening if losing the trade.
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 from the mean.
The Fisher Transform bounce signal appearing near the mean.
TACTICS: The plan in terms of stock price:
STOP is price < 102
TGT 108 to exit
Trail option price to Break Even once stock price > 106; OR consider scaling as green cloud becomes large
We may let the Fisher Transform and 20/50 mean together take us out technically for whatever we get win or lose.
Will update in comments, B3 d^.^b
تم فتح الصفقة
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Filled.
تعليق
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"Trail option price to Break Even once stock price > 106" Trail set. The options are up 61% at this point.
أغلقت الصفقة: تم الوصول للهدف
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Though the price was 10 cents below 108, the options at 102 paid me the 6 in delta I was after. Paid 3.40 for them for 76.4% win.
Hi B3. Interesting analysis. Is there any reason you are not selling puts to initiate your position?
HammondB3
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@Dave.seremek, Thanks. IVpercentile is 3.6 and IVrank is 6 ... Buy to initiate when options are cheap, any inflation in volatility will help your position. I would only sell puts or a put-spread had the options premium been inflated, which is shown by the IV metrics that they are not. If I planned to own the stock, I would also consider selling puts.