WMT Potential Double Top Options Play
Updated
Description
WMT double rejection off 152 along with converging MACD looking bearish.
This is a re-entry from a related idea.
Using A put debit spread, because profits are always limited by time.
Put Debit Spread
Levels on Chart
SL > 152
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/26 149P
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 152 along with converging MACD looking bearish.
This is a re-entry from a related idea.
Using A put debit spread, because profits are always limited by time.
Put Debit Spread
Levels on Chart
SL > 152
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/26 149P
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
Trade active
Filled @ 2.73.Trade closed manually
closed @ 1.7, -37%. Crazy volume spooked me out of the position.Comment
Picked up 11/12 149P's @ .82 to catch the momentum shift on the MACD. 2 DTETrade active
Filled 148/135Ps @ 2.64.Comment
Filled the 11/12 149P's @ .89, +8.5%. not a swift enough reaction to keep the capital in this position at risk.Trade active
The candle today is okay, I am just concerned about this being a holiday week. Generally, for tomorrow:
A bullish candle tomorrow will mean a close out.
A bearish candle will mean a roll.
I may just close this out anyways, as our position has a price target of 135, and we'll now be trading the middle of the range, where it could chop for 1 to 3 weeks for sure.
Trade closed manually
Closed @ 3.29, +25%.I opted to just close out and not wait around for the market to pick a direction while WMT sits in the middle of the range.
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