XOM Low-Risk Earnings Play
XOM setting up nicely for a Low-Risk/High Reward Protective Put over earnings.
Heres the setup:
Long XOM - 85
Long FebWk1 85 Put - .88
Limit/Debit -85.88
Target: 91
Max Profit - 5.12
Max Risk - .88
R:R - 6:1
Plan A:
If trade goes my way, i will place a hard stop at 84, hold stock for dividend, and sell half my position at 87.90, if and only if, the stock price takes longer than a week to reach that price. Else If it closes above 88 within a week I will hold and take all at 91.
Plan B:
If earnings disappoint then I will hold until FebWk1 expiration in order to get an idea were the stock is going. Unless the stock gaps down and trades back up to a close over 85 by Friday Feb 3 I will exercise my right to sell at 85 for a small loss of .88
Thoughts:
If XOM cannot close below or come near 83 prior to FebWk1 then I will assume the buying pressure is strong at this level and look for another bullish entry in order to capitalize on the dividend, buy low-sell high situation, and current uptrend in the sector
Heres the setup:
Long XOM - 85
Long FebWk1 85 Put - .88
Limit/Debit -85.88
Target: 91
Max Profit - 5.12
Max Risk - .88
R:R - 6:1
Plan A:
If trade goes my way, i will place a hard stop at 84, hold stock for dividend, and sell half my position at 87.90, if and only if, the stock price takes longer than a week to reach that price. Else If it closes above 88 within a week I will hold and take all at 91.
Plan B:
If earnings disappoint then I will hold until FebWk1 expiration in order to get an idea were the stock is going. Unless the stock gaps down and trades back up to a close over 85 by Friday Feb 3 I will exercise my right to sell at 85 for a small loss of .88
Thoughts:
If XOM cannot close below or come near 83 prior to FebWk1 then I will assume the buying pressure is strong at this level and look for another bullish entry in order to capitalize on the dividend, buy low-sell high situation, and current uptrend in the sector
Dagangan ditutup secara manual
Exiting this and looking for a new bullish setup since 82.50 is holding support and new talk about sanctions on Iranian imports.
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.