ADPT: Watchlist/Potential trade.
Thought process
Bearish Technicals:
1. H&S Pattern Neckline Violation
2. Trendline break
Fundamentals:
1. Strong Growth
2. Revolutionary product that sells
Memo:
We've got a downgrade today. Usually, downgrades are bullish so, it will be interesting to see if it will trap all the bears or follow the technicals and go down. The landing zones (supports) are given by purple straight lines in the chart.
No position yet but considering puts......
Anywhew, it has a downgrade. So, still thinking.....
Checklist:
Markets - bearish for a month or so IMHO.
Technicals- 80%ish bearish.
RnR- 3pts risk: 6.5pts reward so.
Max Allocation: 10 contracts for the price range.
Contracts Considering: April 16, 50 P
yikes! Bid/Ask spread too far apart: 3.0B/7.50A, So it's definitely expecting big moves. I could profit 6.5ish pts if it goes bearish but the contracts are already priced in for such a move looking at the ask. Zzzzz... I honestly think there are better trades out there for options (although not finding one in the last 5 days) but for equities, it's tempting.
Conclusion for now:
I will wait to see if the spread becomes more reasonable before I place a trade here. Get watchlisted!
Bearish Technicals:
1. H&S Pattern Neckline Violation
2. Trendline break
Fundamentals:
1. Strong Growth
2. Revolutionary product that sells
Memo:
We've got a downgrade today. Usually, downgrades are bullish so, it will be interesting to see if it will trap all the bears or follow the technicals and go down. The landing zones (supports) are given by purple straight lines in the chart.
No position yet but considering puts......
Anywhew, it has a downgrade. So, still thinking.....
Checklist:
Markets - bearish for a month or so IMHO.
Technicals- 80%ish bearish.
RnR- 3pts risk: 6.5pts reward so.
Max Allocation: 10 contracts for the price range.
Contracts Considering: April 16, 50 P
yikes! Bid/Ask spread too far apart: 3.0B/7.50A, So it's definitely expecting big moves. I could profit 6.5ish pts if it goes bearish but the contracts are already priced in for such a move looking at the ask. Zzzzz... I honestly think there are better trades out there for options (although not finding one in the last 5 days) but for equities, it's tempting.
Conclusion for now:
I will wait to see if the spread becomes more reasonable before I place a trade here. Get watchlisted!