Chris,
After reflection I was wrong to recommend buying on the breakout yesterday (Friday, 4/12). Looking back at the past year I noticed that CCJ typically will retrace on a new high. A 61.8 fib retracement brings the stock back to the previous breakout and a gap which where I like to be a buyer on a bounce.
Joe pointed out "The premium for Put CCJ 40 9/21/24 is about $1.85.
For a strike price of 45, the premiums for CCJ range from $1.05 (May 10, 2024) to $8 (Jan 16, 2026)." Those premiums are on the upper end 52 week range of the volatility. Thanks for pointing out Joe.
I prefer shorter term premium and sold the May 45 for $1.19 which brings the B.E. price right to the 61.8 Fib. I would take assignment at that price.
After reflection I was wrong to recommend buying on the breakout yesterday (Friday, 4/12). Looking back at the past year I noticed that CCJ typically will retrace on a new high. A 61.8 fib retracement brings the stock back to the previous breakout and a gap which where I like to be a buyer on a bounce.
Joe pointed out "The premium for Put CCJ 40 9/21/24 is about $1.85.
For a strike price of 45, the premiums for CCJ range from $1.05 (May 10, 2024) to $8 (Jan 16, 2026)." Those premiums are on the upper end 52 week range of the volatility. Thanks for pointing out Joe.
I prefer shorter term premium and sold the May 45 for $1.19 which brings the B.E. price right to the 61.8 Fib. I would take assignment at that price.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.