Well I've had my eye on this for a couple weeks now, and will be looking to enter short through options to limit my risk and increase the leverage of the position. This weeks candle closed as a pinbar / bullish hammer showing that we might have a pullback to retest resistance around the $27.00 / $28.00 area. If we get a pullback I will be waiting for bearish price action to enter short.
The contracts I have my eye on are the OCT15 20 Puts currently the ask is at .17 p/contract. So if I enter it could be around .15 - .10 p/contract. If I do buy the puts I'll be looking to buy +100 contracts. Risk being around $1,200 - $1,700. With profits ranging between $13,000 - $43,222.06 So now you can definitely tell why I'm more than willing to take this trade.
Risk held in this trade:
If entered I may cancel the trade at a loss if price breaks above resistance at the $28.00 area, or I may simply decide to hold the options till expiration and take the full loss of premium payed.
The contracts I have my eye on are the OCT15 20 Puts currently the ask is at .17 p/contract. So if I enter it could be around .15 - .10 p/contract. If I do buy the puts I'll be looking to buy +100 contracts. Risk being around $1,200 - $1,700. With profits ranging between $13,000 - $43,222.06 So now you can definitely tell why I'm more than willing to take this trade.
Risk held in this trade:
- Price action risk (Break above $28.00)
- Expiration ( Contracts losing value, and incurring a loss being the premium payed for contracts.)
- Option contracts time decay
If entered I may cancel the trade at a loss if price breaks above resistance at the $28.00 area, or I may simply decide to hold the options till expiration and take the full loss of premium payed.
- Green lines represent management / take profit areas, another management area not highlighted is the $22.00 area.