I am seeing a few things in the daily Twitter (Ticker: TWTR) stock chart:
On Friday, TWTR closed on its low, sitting on the support line.
After Friday’s ugly close, I think the whole market will be down this week, and I think TWTR is ready to trade down to $56. That would close the window created on April 30 and burst through that support line.
If the stock opens and trades lower today, I will be a buyer of the Sept. 17 61-strike puts.
The markets are narrow and they are trading decent volume.
I would pay up to $.91 for these with five days to go.
If I don’t get a quick move lower in the stock, these will decay pretty quickly.
I will cut my losses if they trade down to $.63 and begin tracking profit in the $1.60 area.
If the market as a whole looks ugly, I will hang on to a few of these for the big win when TWTR trades down to $56.
In Alcoa (Ticker: AA), I have let my Sept. 17 45-strike puts get away from me. With the market down like it was Friday, AA was up two bucks! GRRRR. I will try and salvage something out of these this week.
My Draftkings (Ticker: DKNG) call spread didn’t do as well as I thought it would. I expected DKNG to trade up to $74 but it couldn’t break past that resistance and had a pullback. I was able to sell my Sept. 17 64/69 call spread at $.70 for a 36% loss. On to the next trade …
Access to different viewpoints and professional expertise is one of the best ways to become a better trader.
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Thanks for Reading … See You Next Tuesday!