CWH Bearish inclined naked calls 17 June expiry

• Whats The Plan/Trade/Thought
  CWH is part of the Recreational Vehicles sector, that came out of my shortlist of companies with medium level volatility in the past month
  
• Across the sector there is a bearish alignment which is important
  
• I do expect some volatility with an upwards movement as price across the markets might stabilise from the past 5 weeks of back to back drops
  
  Risk Mitigation
  
• Very clear S&R lines. If price breaks S&R 1, I will have to close the trade.
  
  I Feel
  
• I feel confident about this trade as I will be using my S&R lines as a risk mitigator.
  
  Imagine Yourself Taking The Other Side
  
• With the bearish price action from the past 5 weeks, selling puts would be too risky and almost as if you are trying to guess the bottom
  
  Look For New Information
  
• Dividends is happening on the 13 June. But I have not seen this event result in volatility
  
  How Do I Feel Now
  
• Good, I’m clear
  
  Trade Specs
  
• Sold 236 Calls @ 0.25 - Strike 34
  
• 23.6% to Strike
  
• BP Used 66.9K
  
• Max Gain $5,900
  

Dagangan ditutup: sasaran tercapai:

Yay!