Hello I am the Cafe Trader.
My goal is to help you find great pricing for your long term, and help you finesse your position the markets.
Today we are going to take a closer look at AMD.
As of right now AMD has just peeled off it's highs, gapping down. Is this where buyers are stepping in? Should you buy now? What are some short term plays that can maximize your profits?
CONTEXT
On the Chart I have labeled different levels of Demand. Knowing where the players are (buyers and sellers) can help us be surgical in price and timing.
In my opinion it is best to trade in terms of scenarios. How players react is just as important as Where they react.
For example: Say you are waiting in a long line for coffee. After some time, the line moves very slowly. We can start to ask questions, like "Why is this taking so long? How long will this take?"
"How" is an important question because we would have to examine how fast, or slow, the line is moving. We are in the dark with how big the current players are in the market.
Knowing "How" will help us position ourselves well with the other players. This lines us up for the best pricing, and helps us be able to get out of a position quick if we are wrong.
SHORT TERM
AMD had mixed earnings. This puts pressure on the buyers but they are still in control.
With a new seller inbound It's probable to hit the "Top of Demand" before breaking new highs.
Short Scenario (Red Line)
I think this will touch quick, reject, and then a few days of sideways before the real move down. You can take a Short right in this zone at 172, but if you buy puts, look to get good pricing. If we move up 4% the contracts might be too expensive to swing 3-5 days. I think after the touch, wait two days or so, and then look to get into some options.
Short (shares)
Entry 172
Stop 178.75
TP 150
Short (options)
Entry is after a test of the strong supply, wait a couple days.
Strike price: 160 Strike (or higher)
Premium: 4 to 1 R
$1.50 4-5 days TP $600
$2.50 6-10 days TP $1000
Long Scenario.
If we do not touch the strong supply before going down, This could drop aggressively. Unlike the previous scenario, I am expecting a hot reaction off the strong Demand area.
Long (shares)
Entry 135.50
Stop 124
TP 172
Long (options)
As soon as it touches, same day and next days contracts, 1 - 2 standard deviations outside the money. I think It can get to 140 minimum the same day.
Strike 136-137
Premium: 2.50-3.50 (if you get it cheaper, great!) Really this will depend on if it touches on a Monday, or a Friday lol.
TP 150% - 400%
LONG TERM
These prices should align with your own sentiment and Due Diligence of AMD.
Fair: $149.50 (Top of Demand)
Deal: $133.50 - 135.50 (Strong Demand)
Steal: anything under 108
(2nd Strong Demand)
Don't forget to Boost and follow!
More insight to come, and make sure you check out all my channels.
Much Love and Happy Trading!
thecafetrader
My goal is to help you find great pricing for your long term, and help you finesse your position the markets.
Today we are going to take a closer look at AMD.
As of right now AMD has just peeled off it's highs, gapping down. Is this where buyers are stepping in? Should you buy now? What are some short term plays that can maximize your profits?
CONTEXT
On the Chart I have labeled different levels of Demand. Knowing where the players are (buyers and sellers) can help us be surgical in price and timing.
In my opinion it is best to trade in terms of scenarios. How players react is just as important as Where they react.
For example: Say you are waiting in a long line for coffee. After some time, the line moves very slowly. We can start to ask questions, like "Why is this taking so long? How long will this take?"
"How" is an important question because we would have to examine how fast, or slow, the line is moving. We are in the dark with how big the current players are in the market.
Knowing "How" will help us position ourselves well with the other players. This lines us up for the best pricing, and helps us be able to get out of a position quick if we are wrong.
SHORT TERM
AMD had mixed earnings. This puts pressure on the buyers but they are still in control.
With a new seller inbound It's probable to hit the "Top of Demand" before breaking new highs.
Short Scenario (Red Line)
I think this will touch quick, reject, and then a few days of sideways before the real move down. You can take a Short right in this zone at 172, but if you buy puts, look to get good pricing. If we move up 4% the contracts might be too expensive to swing 3-5 days. I think after the touch, wait two days or so, and then look to get into some options.
Short (shares)
Entry 172
Stop 178.75
TP 150
Short (options)
Entry is after a test of the strong supply, wait a couple days.
Strike price: 160 Strike (or higher)
Premium: 4 to 1 R
$1.50 4-5 days TP $600
$2.50 6-10 days TP $1000
Long Scenario.
If we do not touch the strong supply before going down, This could drop aggressively. Unlike the previous scenario, I am expecting a hot reaction off the strong Demand area.
Long (shares)
Entry 135.50
Stop 124
TP 172
Long (options)
As soon as it touches, same day and next days contracts, 1 - 2 standard deviations outside the money. I think It can get to 140 minimum the same day.
Strike 136-137
Premium: 2.50-3.50 (if you get it cheaper, great!) Really this will depend on if it touches on a Monday, or a Friday lol.
TP 150% - 400%
LONG TERM
These prices should align with your own sentiment and Due Diligence of AMD.
Fair: $149.50 (Top of Demand)
Deal: $133.50 - 135.50 (Strong Demand)
Steal: anything under 108
(2nd Strong Demand)
Don't forget to Boost and follow!
More insight to come, and make sure you check out all my channels.
Much Love and Happy Trading!
thecafetrader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.