Swing calls - High volume on 20May 125 strike
> Earnings on BABA are 25 May
> Over 15k call volume at 125 strike, 20May expiry
> Stochastic %K buy alert (yellow oval)
> RSI needs to move back over 50 w/n 2 days
> Downtrend line from 5Apr not yet broken over
While there is a gap below, the circle shows a bullish island reversal. I am willing to buy swing calls now and exit if stock falls below 101, 100. Price can move back up to white zone before earnings (110-120). Daily 20sma is upward for now and since stochastic %K is at a bottom after producing a buy alert, this is a low-risk place to buy swing calls.
The weekly chart shows possibility for a reversal. A long bullish engulfing candle was followed by higher price and three weeks of consolidation near the highs. I am looking for this week to make a higher close.
On 30min chart, you can see three waves down in price action and in %D stochastic after 5 Apr. There is bullish divergence in RSI and stochastic. To confirm and make charts more bullish, price first has to hold over 104.
I bought 22Apr 110 calls to close this week.
I will buy 20May 120 calls to sell before earnings.
> Over 15k call volume at 125 strike, 20May expiry
> Stochastic %K buy alert (yellow oval)
> RSI needs to move back over 50 w/n 2 days
> Downtrend line from 5Apr not yet broken over
While there is a gap below, the circle shows a bullish island reversal. I am willing to buy swing calls now and exit if stock falls below 101, 100. Price can move back up to white zone before earnings (110-120). Daily 20sma is upward for now and since stochastic %K is at a bottom after producing a buy alert, this is a low-risk place to buy swing calls.
The weekly chart shows possibility for a reversal. A long bullish engulfing candle was followed by higher price and three weeks of consolidation near the highs. I am looking for this week to make a higher close.
On 30min chart, you can see three waves down in price action and in %D stochastic after 5 Apr. There is bullish divergence in RSI and stochastic. To confirm and make charts more bullish, price first has to hold over 104.
I bought 22Apr 110 calls to close this week.
I will buy 20May 120 calls to sell before earnings.
העסקה בוטלה באופן ידני
I did not have enough confirmation to buy 20May options so instead I added a weekly 104 call. I sold both positions when price was over 103.60 based on 5 and 30min charts. Price did break over the downtrend line on 30min chart, but there was MA resistance overhead. My main reason for turning this into a day trade is that I saw over 2,000 shares at 104.00 on the sell side (level 2 quotes). Sure enough, price made a quick push to 103.80 and started selling down thereafter.Near the end of the day I opened a new swing call. BABA was holding up well compared to other stocks and I still like the trade idea.
הערה
BABA stayed over 101 and looks to be opening near that 30min downtrend line. Opening hour should indicate whether to buy/hold calls or to let this trade idea go for now.הערה
bad price action for calls - sold for loss.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.