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Jul 17: What a move!
For those who exited at the close today, a profit of well over 200%.
Jul 14: Finally, a breakout.
Fingers crossed, it will move quickly towards our target. If not much ground has been
gained mid-week, exiting the position might be a good idea, in order to limit
loss of time value premium. Jul 11: The underlying
still hasn't broken out, but the pattern is still in play. We'd push the time
stop back a few days (to Jul 18) to allow for a potential last-minute
breakout.
Jun 25: This underlying has
been locked between converging trendlines for around two months. The apex is
probably a month away at this point. So, if the pattern is a legitimate
symmetrical triangle, it should breakout within the next couple of weeks.
The highlighted options strategy is a
Strangle on the nearest strikes of the front-month (July). Using Aug
strikes would probably not be a great idea because implied volatility (at nearly
40%) is high on that options series, compared with the 31% for this month's. The
target is for a move to either 44.0 or 57.0, depending on whether there
is a downside or upside breakout. A time stop of Jul 13th or so might be
considered.
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