PENN - Momentum Breakout

16 déc. 2017

PENN has been a strong uptrend for most of 2017, as shown on the weekly chart. Also, the weekly chart shows that we are at a measured move target for the first leg of a move that began the week of 1/20/17 at $13 and ended around $21.1. Assuming a L1=L2 move, the target would have been $29.30.

Prices have consolidated around this level on the Daily chart and are offering a MOMO entry. The prices have nice consolidation between Darvas levels, propulsion and a strong Wave. Earnings are 1/25/18, so we do not have to worry about unexpected volatility on a short-term move.

I am looking for a $30.10 entry.
SL. 27.90
Profit: 30.80.

I do not necessarily like the options available for PENN. The Jan18 options are close to the 30day decay window and the April18 options would be a time premium with small open interest. However, Christmas holiday approaching, I would like the additional time, so I will be buying April18 30 Calls on a break of $30.10.

6 janv. 2018

Note

Prices hit reached 31.60, but have not hit the $31.80 profit target. The RSI is weakening, so I am cautiously holding for a move back up to the 31.60 level. As earnings are approaching, I'm worried we may lose volatility.

21 janv. 2018

Trade fermée: cible de profit atteinte

Prices hit 31.80 and I closed 1/2 position. I am continuing to hold 1/2 position with a trailing stop.