XOP Long, using option strategy

2020年4月3日

Condition:
Downtrend line was broken by Gap (G1).
It is closed now, not a strong breakaway Gap. At least, it shows little up side strength.

Trend line break (TLB) Entry:
Stop/market buy above the trend line TL1, (below 34.5)
Stop 0.5 below the trend line TL1, (about 32.5)

Target1: 40; risk/reward=1:2.7
Target2: 50; risk/reward=1:7

This is a trading school homework. I need 6 months to practice trading plan.
If you like it, thank you for your support. Please use SIM/Demo account to try it, until my trading plans get high winning rate.

Trading stock in this plan might be stopped too easily.
In my real trade, I use option Delta to simulate 40 shares of stock.
I bought Sep C40/50 (Delta 0.22), limit 2.55;
and Sell Sep P23 (Delta -0.18) limit 2.55;
stop when 23.
This option strategy is BFF "Buy For Free".
If XOP stays between 23 and 40. No winner, no loser.

2020年4月3日

交易進行

I bought Sep C40/50 (Delta 0.22), limit 2.55;
and Sell Sep P23 (Delta -0.18) limit 2.55;
stop when 23.

2020年4月6日

手動結束交易

SellToClose P23 limit 1.99 -- remove the downside risk
SellToOpen C45/55 limit 1.99 -- cover the cost
Till now, I got a long position XOP Condor C40/45/50/55 for free.
This is a winner.