$BABA high P/L debit spread +170% TP with options #baba #alibaba
Updated
Alibaba suffered the past one year.
My last trade was an
BABA Iron Condor, closed in profit:
https://www.tradingview.com/chart/BABA/jgmj08pD-BABA-highest-IVR-in-this-year-bullish-Iron-Condor-trading/
Now it's time to play for some bullish bounce.
Reasons:
* Bullish volume, +10% in one day.
* Oversold smooth RSI
* Reasonable setup before event
* Bullish action candle
Max profit: $1100
Probability for 50% of Profit: 50%
Profit Target relative to my Buying Power: 170%
Req. Buy Power: $396 (max loss without management before expiry, no way to let this happen!)
Tasty IVR: 45 (average implied volatility rank)
Expiry: 15 days
Buy 3 BABA Jan14' 130 Call
Sell 3 BABA Jan14' 135 Call
Summary, 3 debit call spreads for 1.32db each.
Stop/my risk management: Closing immediately if daily candle is closing BELOW the red line, max loss in my calculations in this case could be ~$250.
Take profit strategy: 65% of max.profit in this case with auto sell order at 3.75cr for each position OR reaching the profit target level ($135 price lvl) - whichever occurs first.
Of course I'll not wait until expiry in any case!
If you liked this article, check my other ideas.
Anyway: HIT THE LIKE BUTTON BELOW, and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview!
My last trade was an
BABA Iron Condor, closed in profit:https://www.tradingview.com/chart/BABA/jgmj08pD-BABA-highest-IVR-in-this-year-bullish-Iron-Condor-trading/
Now it's time to play for some bullish bounce.
Reasons:
* Bullish volume, +10% in one day.
* Oversold smooth RSI
* Reasonable setup before event
* Bullish action candle
Max profit: $1100
Probability for 50% of Profit: 50%
Profit Target relative to my Buying Power: 170%
Req. Buy Power: $396 (max loss without management before expiry, no way to let this happen!)
Tasty IVR: 45 (average implied volatility rank)
Expiry: 15 days
Buy 3 BABA Jan14' 130 Call
Sell 3 BABA Jan14' 135 Call
Summary, 3 debit call spreads for 1.32db each.
Stop/my risk management: Closing immediately if daily candle is closing BELOW the red line, max loss in my calculations in this case could be ~$250.
Take profit strategy: 65% of max.profit in this case with auto sell order at 3.75cr for each position OR reaching the profit target level ($135 price lvl) - whichever occurs first.
Of course I'll not wait until expiry in any case!
If you liked this article, check my other ideas.
Anyway: HIT THE LIKE BUTTON BELOW, and for fresh option ideas FOLLOW ME( @mrAnonymCrypto ) on tradingview!
Trade closed: target reached
Today I've closed higher profit, than I've expected.Vertical spread sold for 4.1cr, target reached.
Summary of profit on this trade:
$834 in 12 days, with $396 buying power.
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✔ IVRank ✔ CALL/PUT skew ✔ Volatility Skew ✔ Delta curves
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REAL Options metrics for over 165+ liquid US symbols:
✔ 𝗔𝘂𝘁𝗼-𝗨𝗽𝗱𝗮𝘁𝗶𝗻𝗴 𝗚𝗘𝗫 𝗹𝗲𝘃𝗲𝗹𝘀
✔ IVRank ✔ CALL/PUT skew ✔ Volatility Skew ✔ Delta curves
👉 7-day TRIAL 🌐 TanukiTrade.com
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