LVS Bullish inclined naked puts 24 Feb expiry
Whats The Plan/Trade/Thought
It looks like in the short term traders will be more concerned about interest rates and the impact it will have. The sentiment now seems to be that recession will be a soft landing. I think we need to trade on this optimism at least for the next month.
Lets look at categories with strong fundamentals where money might flow into given it’s stability
Resorts and Casinos especially LVS is prime because of China opening up. Most of LVS' casinos are based in Macau and one in Singapore. Similar to the travel industry, we should experience once again the spending power of China's tourism force
- Quarterly Increasing earnings (Est)
- Annual Increasing earnings (Est)
- Daily 50EMA is above 100EMA
Risk Mitigation
56.97 is a S&R point. I do feel that the Strike is very close. But with the market's bullish inclination and a key S&R point. We should have some insulation.
Can You Trade The Opposite Side (Y/N)
No
Trade Specs
Sold 120 Puts @ 0.41
Strike 55
7% to Strike
BP Used: 115k
Max Gain: 4.9k
It looks like in the short term traders will be more concerned about interest rates and the impact it will have. The sentiment now seems to be that recession will be a soft landing. I think we need to trade on this optimism at least for the next month.
Lets look at categories with strong fundamentals where money might flow into given it’s stability
Resorts and Casinos especially LVS is prime because of China opening up. Most of LVS' casinos are based in Macau and one in Singapore. Similar to the travel industry, we should experience once again the spending power of China's tourism force
- Quarterly Increasing earnings (Est)
- Annual Increasing earnings (Est)
- Daily 50EMA is above 100EMA
Risk Mitigation
56.97 is a S&R point. I do feel that the Strike is very close. But with the market's bullish inclination and a key S&R point. We should have some insulation.
Can You Trade The Opposite Side (Y/N)
No
Trade Specs
Sold 120 Puts @ 0.41
Strike 55
7% to Strike
BP Used: 115k
Max Gain: 4.9k
Trade closed: target reached:
This was a very close one, but we made it! Yay!