Buy Jull Puts @ $3.80

15 de jan. de 2017

Multiple reasons to like this trade:
1. AZN is in a downtrend, broken by a 3 month move above 200sma.
2. Prices are below the 200sma and have broken previous lows.
3. Good RSI weakness corresponds to the move lower.
4. AZN is a weak stock in the IBB sector.
- Prices reached a bottom on the daily chart and are now making a 2 leg move to a target of $29.30.
- Prices will then be within the Raghee Horner 34EMA Wave and the wave is still in a downtrend.
- Based upon a option Delta of 0.575, Buy Puts @ $3.8 and run down to $27.50 level for first profit stop.
Good Hunting!

18 de jan. de 2017

Nota

I must've calculated the option pricing for the 34EMAL cross and not the $29.30 price target. We will use the July17 30 Puts @ $3.40 as the price target.

The one concern I have at this point is the limited Open Interest (~400 contracts) and $0.50 Bid/Ask spread. I will have to watch these closely as we approach the price target. We may look to purchase Apr17 30 Puts if these become a Risk/Reward Concern.

Good Hunting!

21 de jan. de 2017

Ordem cancelada

Hopefully everyone bought Puts at the 34EMAL...lol! Prices never reached my sell price or option price level, but prices definitely sold off just under $29. If you had bought Puts, exit part of your position below $27.7 (Or now, as prices are @ $27!).

Watch for continuation to the previous lows around $26 and the Keltner extreme price levels around $25.5.

Good Hunting!