Fading AMD into April 2022 Monthly Expiration
AMD is at make-or-break levels of support, as is the 
SOX. It may well be that the semiconductors are ready to give it all up for another leg lower. But given the devious nature of the market, the market likely wants to take away all the premium from those who are short and positioning for a downward breakout.
So this is a little bit of a risky fade trade, with clearly defined stop levels, Any close below the .382 retracement of AMD's rally to its ATH from a major low around 1.61 in July / August 2015. The lows from January ($99.35) and March ($100.08) can also serve as a point of invalidation for the trade.
I am playing for a bounce into resistance around the 34-day EMA in the days leading up to April 22. This is also around the level of the .50 retracement of the selloff that began March 30, where price fell from a swing high of about $125. The .50 retracement of the recent decline from 125 on March 30 = approximately 113.
I used a put credit spread, deep ITM, so I can limit risk to $800 will having a max profit potential of $4200.
SOX. It may well be that the semiconductors are ready to give it all up for another leg lower. But given the devious nature of the market, the market likely wants to take away all the premium from those who are short and positioning for a downward breakout. So this is a little bit of a risky fade trade, with clearly defined stop levels, Any close below the .382 retracement of AMD's rally to its ATH from a major low around 1.61 in July / August 2015. The lows from January ($99.35) and March ($100.08) can also serve as a point of invalidation for the trade.
I am playing for a bounce into resistance around the 34-day EMA in the days leading up to April 22. This is also around the level of the .50 retracement of the selloff that began March 30, where price fell from a swing high of about $125. The .50 retracement of the recent decline from 125 on March 30 = approximately 113.
I used a put credit spread, deep ITM, so I can limit risk to $800 will having a max profit potential of $4200.
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SquishTrade
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.