WMT Weekly Options Play
Updated
Description
WMT double rejection off 150, a decisive close below this level triggers a short position.
Using A put debit spread, because profits are always limited by time.
Put Debit Spread
Levels on Chart
SL > 150
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/26 148P
SELL
11/26 135P
R/R & Breakevens vary on fill.
The long call is placed ATM for higher chance of profit,
The short call is placed at the 135 support level.
Earnings on 16NOV are a risk factor
Manage Risk
Only invest what you are willing to lose
WMT double rejection off 150, a decisive close below this level triggers a short position.
Using A put debit spread, because profits are always limited by time.
Put Debit Spread
Levels on Chart
SL > 150
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/26 148P
SELL
11/26 135P
R/R & Breakevens vary on fill.
The long call is placed ATM for higher chance of profit,
The short call is placed at the 135 support level.
Earnings on 16NOV are a risk factor
Manage Risk
Only invest what you are willing to lose
Order cancelled
I missed the entry.Note
If I entered on this signal, I would have been stopped out the next day. Not bad.Note
Watching this again for a close <150.This will mark a fourth rejection.
Note
Looks like an ascending channel, if it breaks below the lower trendline in the channel, then I'll expect further downside.
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