BA Descending Triangle Weekly Options Play
Updated
Description
BA has been working this Descending Triangle from its post-covid crash high around 278. There was one false breakout to the upside on 15NOV, which I traded, related idea linked.
Descending Triangles are bearish in nature, and the implied move carries BA down to 137.
Intermediate supports are at 194, 179 and eventually 144.5.
The immense amount of short triggers I am getting in this market is alarming, indicating institutional liquidation has been going on since around JAN - FEB.
The "new strain scare" from last Friday shows a perfect of example of investors looking for excuses to sell, not reasons.
In reality, the market is not worth its current valuation.
Good News = Rising rates = bad for earnings = bad for stock market
And bad news is just bad news.
Long Put
Levels on Chart
SL > 205.8
PT : 179
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
12/31 180P
R/R & Breakevens vary on fill.
The long put is placed at a reasonable midpoint between current stock price and eventual price target utilizing available strikes. I do not expect BA to reach this price target in a month.
Manage Risk
Only invest what you are willing to lose
BA has been working this Descending Triangle from its post-covid crash high around 278. There was one false breakout to the upside on 15NOV, which I traded, related idea linked.
Descending Triangles are bearish in nature, and the implied move carries BA down to 137.
Intermediate supports are at 194, 179 and eventually 144.5.
The immense amount of short triggers I am getting in this market is alarming, indicating institutional liquidation has been going on since around JAN - FEB.
The "new strain scare" from last Friday shows a perfect of example of investors looking for excuses to sell, not reasons.
In reality, the market is not worth its current valuation.
Good News = Rising rates = bad for earnings = bad for stock market
And bad news is just bad news.
Long Put
Levels on Chart
SL > 205.8
PT : 179
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
12/31 180P
R/R & Breakevens vary on fill.
The long put is placed at a reasonable midpoint between current stock price and eventual price target utilizing available strikes. I do not expect BA to reach this price target in a month.
Manage Risk
Only invest what you are willing to lose
Trade active
Filled @ 3.5.Trade active
Added to position, went with 12/17 180Ps filled @ 3.65.Trade active
BA actually triggered my stop loss today, but even with watching it right until the close, I was unable to catch it.I will be giving this another day, simply due to how tight the price was to my SL today and being unable to close the position.
Trade active
Held this today on heavy selling towards the close, expecting BA to be at the top of the new consolidation range.I am in a psychologically compromising position, and am looking to exit.
Note
Closed the 12/17 Ps @ .3, -92%Waiting until EOD to close the 12/31's
Trade closed: stop reached
Closed 12/31s @ .75, -79%.Trade active
Re-entered 1/7/22 185Ps @ 2.05.Trade closed manually
Got even today before the FOMC, liquidated most shorts.Filled @ 4.6, +124%.
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