Real quick before trading closes.. I have the levels above that could be reached if traders react well to the earnings and the levels if a drop occurs.
We all know that the earnings are going to be low. That is factored in already, but still there is still going to be a reaction tomorrow morning. I personally think there is more risk going for a call rather than a put due to SBUX outperforming XRT, the retail sector's ticker. More room to move down rather than up.
Still earnings is always a little bit of a gamble so be safe and trade appropriately! Give me a follow if you like my content and check out my past couple posts... I'm pretty good at calling SPX movements ;)
We all know that the earnings are going to be low. That is factored in already, but still there is still going to be a reaction tomorrow morning. I personally think there is more risk going for a call rather than a put due to SBUX outperforming XRT, the retail sector's ticker. More room to move down rather than up.
Still earnings is always a little bit of a gamble so be safe and trade appropriately! Give me a follow if you like my content and check out my past couple posts... I'm pretty good at calling SPX movements ;)
Comment:
Also you have to keep in mind what the general market is going to be doing tomorrow as well. If everything is going up and SBUX trades lower then it could quickly come back and trade at the same level before 11:00. Time-frame could be tight on this trade.
Trade closed: target reached:
While it did go down, I am not happy with the results. It did not get down as far as I hoped, but this was largely in part to what I mentioned yesterday:
"Also you have to keep in mind what the general market is going to be doing tomorrow as well. If everything is going up and SBUX trades lower then it could quickly come back and trade at the same level before 11:00. Time-frame could be tight on this trade."
All in all it was predicted and profit is profit.
"Also you have to keep in mind what the general market is going to be doing tomorrow as well. If everything is going up and SBUX trades lower then it could quickly come back and trade at the same level before 11:00. Time-frame could be tight on this trade."
All in all it was predicted and profit is profit.