AMZN triggered 5 BUY signals on the close of Friday. If AMZN is on your watchlist the challenge you have now is to act. What strategy can you safely apply at these levels as AMZN works itself outside of the +1 keltner channel and looks set to attack the 1.272 extension.
The expensive first option to consider is the 60 delta long call 90 days out however for most traders this has the best upside and highest cost. Its also critical to define your exit point for the both the contract and the stock so that appropriate action can be taken when triggered. The second option is the 60/30 Delta Call Debit spread - slightly cheaper than the long call and with a cap to the upside it is even more important to know your exit point. Option 3 is to consider a short duration OTM call butterfly using the expected move with the potential to add a defensive credit position when the lower strike is breached. Fourth option is a OTM put credit spread - you could use a 25/15 delta spread, 68% probability or a 1:1 Risk reward strategy however with each of these you have limited upside so put spreads are better used as a financing method for the debit spreads.
You have many options on the 5 BUY signals. The most important signals for me are the Wave score going green and the Alpha Score above 70 as these are strong trend indicators. Like any system, your ability to remain consistent to your strategy and signals is what will drive success. Many traders make the mistake of not planning and that is a ticket to disaster. Plan. Act. Be consistent.
Happy trading!
The expensive first option to consider is the 60 delta long call 90 days out however for most traders this has the best upside and highest cost. Its also critical to define your exit point for the both the contract and the stock so that appropriate action can be taken when triggered. The second option is the 60/30 Delta Call Debit spread - slightly cheaper than the long call and with a cap to the upside it is even more important to know your exit point. Option 3 is to consider a short duration OTM call butterfly using the expected move with the potential to add a defensive credit position when the lower strike is breached. Fourth option is a OTM put credit spread - you could use a 25/15 delta spread, 68% probability or a 1:1 Risk reward strategy however with each of these you have limited upside so put spreads are better used as a financing method for the debit spreads.
You have many options on the 5 BUY signals. The most important signals for me are the Wave score going green and the Alpha Score above 70 as these are strong trend indicators. Like any system, your ability to remain consistent to your strategy and signals is what will drive success. Many traders make the mistake of not planning and that is a ticket to disaster. Plan. Act. Be consistent.
Happy trading!
Comment:
Taking profits here
I am going to reset some of my AMZN trades here. The bulk of the 350% here is between the call debit spread and the price is pretty close to my 70% max of the spread.
SOLD -1 VERTICAL AMZN 100 (Weeklys) 26 NOV 21 3475/3500 CALL @17.56 (original entry price at 3.72) for a 357% return.
BOT +3 VERTICAL AMZN 100 19 NOV 21 3500/3495 PUT @1.36 CBOE (orginal entry price of 2.61) for a 46% return
Total gains from AMZN on these two trades = $1,720
Total Capital used = - $390 (this was a net credit to start)
The revised trades have been sent to subscribers on email.
I am going to reset some of my AMZN trades here. The bulk of the 350% here is between the call debit spread and the price is pretty close to my 70% max of the spread.
SOLD -1 VERTICAL AMZN 100 (Weeklys) 26 NOV 21 3475/3500 CALL @17.56 (original entry price at 3.72) for a 357% return.
BOT +3 VERTICAL AMZN 100 19 NOV 21 3500/3495 PUT @1.36 CBOE (orginal entry price of 2.61) for a 46% return
Total gains from AMZN on these two trades = $1,720
Total Capital used = - $390 (this was a net credit to start)
The revised trades have been sent to subscribers on email.
or subscription information to my various services please email support@whtradecoach.com
Call Debit Spread 26 Nov 3475/3500 @ 3.52 - current price 16.95
Call Debit Spread 18 Feb 3900/3920 @ 4.33 - current price 4.67
Call Butterfly 19 Nov 3900/4000/4100 @ 0.60 - current price 1.28
Call Butterfly 19 Nov 3900/4000/4100 @ 0.80 - current price 1.28
Call Butterfly 17 Dec 3750/3800/3850 @ 2.08- current price 2.25
Broken Wing Butterfly 19 Nov 3650/3670/3680 @ 1.43 - current price 2.23
Put Credit Spread 19 Nov 3500/3495 @ 2.61 - current price 1.22