Trade Findings and Adjustments 04-11-2019
What’s happening with our markets right now?
Tax Season = Selling, China deal not yet complete, Global “growth” concerns, Brexit – pushed to Oct 31, 2019, The Quiet season before earnings
So What was Tuesday nights trading ideas on what you could do with DIS ?
May 24th $116 – 120 strike Bull Call
116 Long Call at 4.45
120 Short Call at 2.45
Easy to adjust if it goes the wrong way
Adjustment here roll the 120 short call down to the 115 if it breaks the $115 price
$120 Strike Leap Long Call for $7
Lots of time for potential profit
Adjustment – Dollar cost average or add a long put with technical crossovers and time is your friend
May monthly 110 – 105 Bull Put
110 Short Put
105 Long Put
for .66 credit with a BIG buffer below current price of $116.60ish
You are risking more money for a smaller return, but has a high probability of profit.
Hard to adjust if it goes the wrong way.
What the biggest Risk for any of these trades? Earnings on 05/08/2019
What is the biggest profitable event for the trade?Was investor day and now is the movie Endgame part 2
Helping you understand the trades
Option A – You don’t have to stay in the trade for max profit, until May24th
Option B – You don’t have to stay in the trade until Jan 2020
Option C – You don’t need the full credit with a 1 to 6.5 reward to risk ratio. YOU have 6.5 risks for every reward to can make !!!!