CWH Bearish inclined naked calls 17 June expiry

Updated
  • Whats The Plan/Trade/Thought
  • CWH is part of the Recreational Vehicles sector, that came out of my shortlist of companies with medium level volatility in the past month
  • Across the sector there is a bearish alignment which is important
  • I do expect some volatility with an upwards movement as price across the markets might stabilise from the past 5 weeks of back to back drops

    Risk Mitigation
  • Very clear S&R lines. If price breaks S&R 1, I will have to close the trade.

    I Feel
  • I feel confident about this trade as I will be using my S&R lines as a risk mitigator.

    Imagine Yourself Taking The Other Side
  • With the bearish price action from the past 5 weeks, selling puts would be too risky and almost as if you are trying to guess the bottom

    Look For New Information
  • Dividends is happening on the 13 June. But I have not seen this event result in volatility

    How Do I Feel Now
  • Good, I’m clear

    Trade Specs
  • Sold 236 Calls @ 0.25 - Strike 34
  • 23.6% to Strike
  • BP Used 66.9K
  • Max Gain $5,900
Trade closed: target reached
Yay!
Beyond Technical Analysiscwhoptions-strategy

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