Rocky road ahead for SNOW?
SNOW is currently trading below its 9 EMA and forming a broadening triangle pattern on its chart. Current levels could be signalling a bull trap.
Closest resistance is $290-$291 level.
Considering the second lockup period ending on Thursday, it's safe to say that we may after all see some selling. However, keep a lookout for a break of $284, which would break the current pattern and retest resistance at $290.
Don't worry if we see some selling as it could give us an opportunity for buying into the long-term. Short-term, the stock has to calm down.
You could buy puts at market open as follows:
For this week's expiration - BTO 8 Jan 2021 $260 Put (highest volume) ($1.5)
For next week's expiration - BTO 15 Jan 2021 $260 Put (more expensive compared to weekly expiration) ($4.5)
Both trades are equally high risk/reward
Good luck trading!
Closest resistance is $290-$291 level.
Considering the second lockup period ending on Thursday, it's safe to say that we may after all see some selling. However, keep a lookout for a break of $284, which would break the current pattern and retest resistance at $290.
Don't worry if we see some selling as it could give us an opportunity for buying into the long-term. Short-term, the stock has to calm down.
You could buy puts at market open as follows:
For this week's expiration - BTO 8 Jan 2021 $260 Put (highest volume) ($1.5)
For next week's expiration - BTO 15 Jan 2021 $260 Put (more expensive compared to weekly expiration) ($4.5)
Both trades are equally high risk/reward
Good luck trading!
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