My trade idea is as follows
Observations
- Google is a tricky one. Although most of the market declined, Google gapped up due to its strong earnings. However, it swiftly "filled the gap". I believe that from now on, it will follow the general market - down.
- 100MA was broken a few days ago. If it weren't for the earnings, it would have been broken and head towards 200 MA.
Proposed trade
- Start with a bear call spread with the short leg at 1750
Risk management
- Monitor how the trade goes. If it continues to go down, add a put credit spread at 50 points below the 200 MA level
- If the stock moves higher, then we can roll the call legs 100 points higher.
Profit management
- Take profit at 70% of max gains
- Monitor how the trade goes. If it continues to go down, add another bear call spread 50-100 points below.
Observations
- Google is a tricky one. Although most of the market declined, Google gapped up due to its strong earnings. However, it swiftly "filled the gap". I believe that from now on, it will follow the general market - down.
- 100MA was broken a few days ago. If it weren't for the earnings, it would have been broken and head towards 200 MA.
Proposed trade
- Start with a bear call spread with the short leg at 1750
Risk management
- Monitor how the trade goes. If it continues to go down, add a put credit spread at 50 points below the 200 MA level
- If the stock moves higher, then we can roll the call legs 100 points higher.
Profit management
- Take profit at 70% of max gains
- Monitor how the trade goes. If it continues to go down, add another bear call spread 50-100 points below.
Nota
The short put, given the volatility, should be set at 1360
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.