$EDU short put vertical 73% PoP for credit at support
$EDU short put vertical 73% PoP for credit at support
New Oriental Education & Tech Group had a big move and a big correction.
It's time to playing some bullish move.
Weekly timeframe:
Oversold on weeky and on daily too, sitting on the bullish trendline.
Daily timeframe:
Oversold too, bullish divergence.
Playing short put vertical here, because IVR is relative high: 60.
Max profit: $236
PoP50: 73%
Profit Target relative to my Buying Power: 30%
Max loss with my risk management: ~$150
Req. Buy Power: $764 (max loss without management before expiry, no way to let this happen!)
Tasty IVR: 60 (relative high)
Expiry: 24 days
Buy 4 EDU Jul16' 5 PUT
Sell 4 EDU Jul16' 7.5 PUT
Short put spread for 0.6cr each, because IVR is relative high.
COMMENT: Because of very low RSI and daily divergence it could be a good choice into my investment bag/portfolio too.
Stop/my risk management: Closing immediately if daily candle is closing BELOW the box, max loss in my calculations in this case could be 150$. Probability of loss in this way: ~27% .
Take profit strategy: 65% of max.profit in this case with auto sell order at 0.20db. Probability of profit this way: ~73%.
Of course I'll not wait until expiry in any case!
If you liked this article, check my other ideas.
Anyway: HIT THE LIKE BUTTON BELOW, and for fresh option ideas FOLLOW ME( @TanukiTrade ) on tradingview!
New Oriental Education & Tech Group had a big move and a big correction.
It's time to playing some bullish move.
Weekly timeframe:
Oversold on weeky and on daily too, sitting on the bullish trendline.
Daily timeframe:
Oversold too, bullish divergence.
Playing short put vertical here, because IVR is relative high: 60.
Max profit: $236
PoP50: 73%
Profit Target relative to my Buying Power: 30%
Max loss with my risk management: ~$150
Req. Buy Power: $764 (max loss without management before expiry, no way to let this happen!)
Tasty IVR: 60 (relative high)
Expiry: 24 days
Buy 4 EDU Jul16' 5 PUT
Sell 4 EDU Jul16' 7.5 PUT
Short put spread for 0.6cr each, because IVR is relative high.
COMMENT: Because of very low RSI and daily divergence it could be a good choice into my investment bag/portfolio too.
Stop/my risk management: Closing immediately if daily candle is closing BELOW the box, max loss in my calculations in this case could be 150$. Probability of loss in this way: ~27% .
Take profit strategy: 65% of max.profit in this case with auto sell order at 0.20db. Probability of profit this way: ~73%.
Of course I'll not wait until expiry in any case!
If you liked this article, check my other ideas.
Anyway: HIT THE LIKE BUTTON BELOW, and for fresh option ideas FOLLOW ME( @TanukiTrade ) on tradingview!
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