rufuspeoples

Developing a Channel

NYSE:YELP   Yelp Inc.
I see Yelp developing a channel between 37.31 and 40.95. There's a possibility that this flag pattern turns into a continuation of a previous up trend so I am cautious but today opened a broken wing iron condor to profit the most if it stays in the said range but still make a slight profit slightly above or below. If it breaks resistance, then I will roll the puts to create an iron butterfly; even a partially inverted iron condor if needed. I can also roll the calls to protect the bottom if the price falls below support but will have less room to defend serious price drops since that is the side of the long wing.

Spread:
Brought: Jun 18 34.5 Put
Sold: Jun 18 38 Put
Brought: Jun 18 39.5 Call
Sold: Jun 18 43 Call

Credit: 1.80
Profit Range: 36.19 and 41.30
Max Profit Range: 38.00 and 39.50

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