Bidu seems found support and the pull back bottoms were in upper trend. Position Sell Put Spread: -1x170, 1x165 Premium: $1.21 Breakeven: $168.79 PoP: 69.48 Target Profit: 50% of the premium.
Sell OTM credit spreads at interim and strong resistance /support. ATM place your SL, where the price is half of spread ~ 0.53
BIDU has been pulled back from 188$. I expect it would start to bounce back from the trend line. Setup the position by selling a put spread. Position: Short June 170 Buy June 165 Premium: 1.05$ Target: 50% of the premium. Breakeven, 168.95$ PoP: 71.35%
This is one of my favorite weekly plays!!! so yes I am biased. Now that we got this disclaimer out of the way, here is the idea. This stock has major support at the 60 area, so we will be using that as the protection level for this trade. Option 1. -62.5/+57.50 for June 16th has a midprice of .77... a decent 15% ROI... Option 2. -60P, midprice is .62, but with...
Update on a upsloping trendline (blue) which acts as resistance On the 5 hour chart, we should have generated a sell signal. I still remain short via puyt spread 1x2s, as frost is no longer an issue. It appears the market is still digesting this from last week and should correct lower IMHO as physical supplies out of Brazil remain steady. Warehouse stocks in...