January's Secondary Trade
This trade is slightly riskier and is the opposite of the general market movement ( bullish ).
The reasons why I pegged this as bearish is:
PG also seems to be contained in a range that puts my strike in a favorable position as it is near the upper S/R Line.
I'm slightly worried about the Earning release on the 20 Jan and might close this trade before just to be safe. This trade will be hedged with a bullish VXX trade, paid by the Jan premiums
Sold 7 CALLs @ 1.5, Strike 142
BP block: 17k
Max gain est: $1045
This trade is slightly riskier and is the opposite of the general market movement ( bullish ).
The reasons why I pegged this as bearish is:
- Based on the 9 Nov price movement due to the US elections, where post COVID-19 stocks spiked, PG fell.
- Consumer Defensive sector seems to be in a position where traders in the short term don't see much aggressive growth vs other sectors which have taken a beating and are poised for bigger climbs as we advance against the virus with the vaccines
PG also seems to be contained in a range that puts my strike in a favorable position as it is near the upper S/R Line.
I'm slightly worried about the Earning release on the 20 Jan and might close this trade before just to be safe. This trade will be hedged with a bullish VXX trade, paid by the Jan premiums
Sold 7 CALLs @ 1.5, Strike 142
BP block: 17k
Max gain est: $1045
Trade closed manually
Closed this manually as the total of the premium gained at this point plus my VXX hedge showed a profit higher and lowered my risk if I just waited for PG to expire :)
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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.