Trade Findings and Adjustments 04-11-2019
What’s happening with our markets right now?
Tax Season = Selling, China deal not yet complete, Global “growth” concerns, Brexit – pushed to Oct 31, 2019, The Quiet season before earnings
So What was Tuesday nights trading ideas on what you could do with DIS ?
Option A:
May 24th $116 – 120 strike Bull Call
116 Long Call at 4.45
120 Short Call at 2.45
Cost: $2.00
Reward: $2.00
117.92 breakeven.
Easy to adjust if it goes the wrong way
Adjustment here roll the 120 short call down to the 115 if it breaks the $115 price
An alternative:
Option B:
Jan 2020
$120 Strike Leap Long Call for $7
Lots of time for potential profit
Adjustment – Dollar cost average or add a long put with technical crossovers and time is your friend
Another alternative:
Option C:
May monthly 110 – 105 Bull Put
110 Short Put
105 Long Put
for .66 credit with a BIG buffer below current price of $116.60ish
You are risking more money for a smaller return, but has a high probability of profit.
Hard to adjust if it goes the wrong way.
What the biggest Risk for any of these trades? Earnings on 05/08/2019
What is the biggest profitable event for the trade?Was investor day and now is the movie Endgame part 2
Helping you understand the trades
Option A – You don’t have to stay in the trade for max profit, until May24th
Option B – You don’t have to stay in the trade until Jan 2020
Option C – You don’t need the full credit with a 1 to 6.5 reward to risk ratio. YOU have 6.5 risks for every reward to can make !!!!
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