Z 3 FEB 46/ 10 FEB 43 DIAGONAL CALL
Updated
HIGH BASE SET UP:
Detailed Definition of setup and what market conditions are desirable
Since October 13th Z has had some decent momentum to the upside and at the start of the new year, it had even more upside momentum until it finally started basing January 12th to the 20th with lower or equal volume. In the short term, market conditions are bullish.
Detailed Definition of the trigger (entry point) used to enter positions
When I identified the high base last week, I set an alert at 43.54 which was the high on the 17th. It trigger today.
Detailed Definition used to determine Stops (abandon or adjust)
No stops, I'm risking 2% of my portfolio and set up for max loss.
Detailed Definition of the methods used to determine targets
46.21 was a support zone back from January 28th to about april 20th 2022. So 46.21 is going to be my target as I would anticipate that it's going to want to test that area once again.
How strike prices and expiration dates are selected
Zillow is set to announce earnings Feb 15th. So I didn't want to hold this through earnings so I selected the Feb 3rd as my target and expiration date.
Position management strategies when the stock goes lower
If this goes lower and falls apart, I'm set up for max loss so I'll just move on to another trade.
Position management strategies when the stock goes sideways
If this goes sideways, I'll give it until next week to see if it'll make a run up to my 46 target. Either I'm set up for max loss.
Position management strategies when the stock goes higher
Ok so let's take a look at the hour chart. As of now, it's testing that middle trend line I drew. I wanna see this get above that middle trend line and blow through 46.21. I've set an alert for 46.21 because I'm going to want to see the price action in this area. Because it may want to go test the upper yellow trend line I drew. If it does that I'll want to see a pull back to that support area of 46.21
Position management strategy at expiration
At Feb. 3rd expiration if this is well above my 46.21 target, I'll close out the entire combo. If we're below my 46.21 I'll hang on to my 43 strike but this needs to be closed out before earnings.
Detailed Definition of setup and what market conditions are desirable
Since October 13th Z has had some decent momentum to the upside and at the start of the new year, it had even more upside momentum until it finally started basing January 12th to the 20th with lower or equal volume. In the short term, market conditions are bullish.
Detailed Definition of the trigger (entry point) used to enter positions
When I identified the high base last week, I set an alert at 43.54 which was the high on the 17th. It trigger today.
Detailed Definition used to determine Stops (abandon or adjust)
No stops, I'm risking 2% of my portfolio and set up for max loss.
Detailed Definition of the methods used to determine targets
46.21 was a support zone back from January 28th to about april 20th 2022. So 46.21 is going to be my target as I would anticipate that it's going to want to test that area once again.
How strike prices and expiration dates are selected
Zillow is set to announce earnings Feb 15th. So I didn't want to hold this through earnings so I selected the Feb 3rd as my target and expiration date.
Position management strategies when the stock goes lower
If this goes lower and falls apart, I'm set up for max loss so I'll just move on to another trade.
Position management strategies when the stock goes sideways
If this goes sideways, I'll give it until next week to see if it'll make a run up to my 46 target. Either I'm set up for max loss.
Position management strategies when the stock goes higher
Ok so let's take a look at the hour chart. As of now, it's testing that middle trend line I drew. I wanna see this get above that middle trend line and blow through 46.21. I've set an alert for 46.21 because I'm going to want to see the price action in this area. Because it may want to go test the upper yellow trend line I drew. If it does that I'll want to see a pull back to that support area of 46.21
Position management strategy at expiration
At Feb. 3rd expiration if this is well above my 46.21 target, I'll close out the entire combo. If we're below my 46.21 I'll hang on to my 43 strike but this needs to be closed out before earnings.
Trade active
Note
I reached my target this morning. Gonna get out of this.Trade closed: target reached
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