Long
TextBook LowRisk-HighReward Trade with Massive Upside Potential
Biotech is looking like it found a bottom especially the blue chips.
Celgene has some $95 puts expiring next month for a premium of $1.30. That means that by selling these puts we can get put the shares just above the 52-week low if we were lucky enough. S&P has a 12-month target of $160. I would love to own shares of CELG near the 52-week low so i will sell some Aug Puts.
Next, if this is the bottom and Celgene is done testing the bottom for a 3rd and final time due to Brexit, then I think this is the beginning off a bullish 5 Elliot wave move. If this is true then I will try to catch the 50% retracement.
Trigger: 102:20; Stop: 97.91.
If Celgene can make this 5 wave move up I will probably hold the stock and sell calls due to the premium of the options and see if $160 is actually plausible.
Celgene has some $95 puts expiring next month for a premium of $1.30. That means that by selling these puts we can get put the shares just above the 52-week low if we were lucky enough. S&P has a 12-month target of $160. I would love to own shares of CELG near the 52-week low so i will sell some Aug Puts.
Next, if this is the bottom and Celgene is done testing the bottom for a 3rd and final time due to Brexit, then I think this is the beginning off a bullish 5 Elliot wave move. If this is true then I will try to catch the 50% retracement.
Trigger: 102:20; Stop: 97.91.
If Celgene can make this 5 wave move up I will probably hold the stock and sell calls due to the premium of the options and see if $160 is actually plausible.
Trade fermée: cible de profit atteinte
The Put Sale Triggered at 1.55 and over 1.00 of of premium evaporated making this a solid win. The 50% entrancement target was never hit but with the Put sale I was still able to win on this trade
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Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.