Trade Findings and Adjustments 04-11-2019

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 ?

Option A:

May 24th $116 – 120 strike Bull Call

116 Long Call at 4.45

120 Short Call at 2.45

Cost: $2.00

Reward: $2.00

117.92 breakeven.

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

An alternative:

Option B:

Jan 2020

$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

Another alternative:

Option C:

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 !!!!                     

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