Get started

Gapfill

Gap FillEarnings gapped the stock up and it turned right back around quickly. My portfolio is filled almost exclusively with long and neutral positions so it was nice to find a good short position to add but the problem is that I have already allocated all of my funds in other positions. With a small account I take a few extra risk to increase it more rapidly; one of these risks is that I allocate almost 100% of my account balance to active trades. If the markets decide to blow up my account then I am very vulnerable. I try to mitigate this risk by having a somewhat diverse array of long, short and neutral position on at all times but I haven't seen any short position that I really liked so this is a nice find for that reason. This is just a 1 dollar gap so I wouldn't gain much from my typical deep in the money debit spread unless I thought it was going to fall much lower than my bottom trendline. So the way that I am going to set this trade up is to set up a in the money credit spread. If if it falls through the bottom trend line I make make profit, if it falls between the two lines I make money as long as its above my break even point, but the risk here is that if it doesn't drop in price enough to fall in the zone then all is lost; I'm good with that since I have defined my risk from the beginning of the trade with, in my opinion, is a kin to setting a stop loss in trades like this where the loss isn't much greater then the max profit.
NASDAQ:VTRS
by rufuspeoples
Gap fill idea + Covid recovery Summer playSteady move brewing @ $EEX over 5.65 could see a push towards a breakout at 6.50 looking to fill the gap at 10+ High institutional ownership at 97% but very poor revenue last quarter 12.2M actual vs 85M expected however this company is no stranger to 100+ million quarterly revenue From their last earnings call: "To start, our first quarter results continued to be impacted by the COVID-19 pandemic, as we cancelled or postponed all our live events except for Surf Expo in Orlando in January." "We expect a full resumption of our events calendar beginning this summer. We're planning for the busiest second half in Emerald’s history in terms of the number of events we're producing given the short postponements that have occurred. While the outlook for attendance at our shows remains uncertain, and could well be challenged in the near term, even for events we do stage with the lingering impacts of COVID we’re encouraged with the early success that we're seeing from other operators in Asia, where recovery seems further along, and we've seen several recent events, which have matched or exceeded pre-COVID levels."
NYSE:EEXLong
by thugoat
Twitter Gap FillI'm watching Twitter this week, If it breaks 55.70, and confirms, then I want to enter a trade to ride the stock to 64.20. The strategy I would use to do this is a diagonal spread that would be set up as follows: Buy Aug20 45 Call ask:11.25 Sell Jun16 62.5 Call bid:1.00 mid: $10.10 This analysis is based on the prices over the weekend at the current price and will obviously change some as the stock moves into position but here is my reasoning. This long call is at the .81 delta and has 3 months till expiration so it will suffer very little theta decay. It has an extrinsic value of $1.76 which is offset by the $1.02 of the short call. There is no penalty for waiting which is the main drawback for buying options. If the stock price breaches the short call early then simply sell the spread for a profit. If it happens close to expiration then the short call can be rolled out and up to collect more premium and widen your spread. If the price never gets to the short strike the reevaluate and decide whether to close the position or sell another call that could hopefully offset the remaining extrinsic value purchased in your long option. The later would mean that after two months your break even would be around 45 so I wouldn't exit the position unless the stock went so low that selling the covered call would create a spread tighter than the cost bases. Twitter is generally trending upward so I think there is a high probability that at worst you hold the long option for 3 months and sell away all, or more than, the extrinsic value and could profit from the sell of the long call before expiration even with a small dip in the price.
NYSE:TWTRLong
by rufuspeoples
1
Set phasers to 'fill'.In the liquidity exuberance of early April did you notice that the SPY forgot to print a certain price range? I can't spot a more glaring gap in the dailies than that. With the 50ema coming back into play we might fill this gap at around $400. If it bounces without doing that, then maybe don't trust it. All gaps must fill. The deviation between the larger emas is huge. This of course hints at some pretty violent ranging. After one of the most boring months in trading, there's finally some attempt at discovery (no doubt enfeebled). I expect a good fight around the 50s. Overall, for the past year buying the 50d has been a good strategy, but we should get a bit of a tussle this time rather than the intraday rebound from a couple of weeks ago. Bring it on. I'm ready to get hurt again.
AMEX:SPY
by PreferredStonk
AAL: Invisible BreakoutAAL made quite the move during the nights of April 23rd and April 26th, and that move was a gap up above the downtrend, with an open at $21.46 and a close at $22.00. This invisible move is very bullish, as AAL was in a downtrend for about a month and now the gap up has broken the trend. We failed to break $22, and are now ranging between $21.64 - $21.06. However, before we get too excited for a continuation, I presume the gap will be filled ($21.21-$21.46), as we gapped through a pretty major price level, as previously mentioned. Statistically speaking, gaps have about a 91% chance of being filled according to bioequity.org. Once this level has been cleared, I anticipate a continuation of the breakout by breaking out of the established range and continuing to the upside, as bullish sentiment for AAL will continue to be fueled due to reopening optimism.
NASDAQ:AALLong
by ZaviStocks
BTCUSD-The dump may be over faster than you think!!!The green rectangles on the chart are gaps in the price over the weekend. All the immediate gaps that are relatively close below the price have been filled such as the gap from about $54500-$55200. The only gaps that remain are above the price all the way up back to $60k and you could argue the gap goes up to about $61600. There is also a bullish divergence on the 1h chart and if you look at the bitcoin spot chart it can also be seen on the 4h chart. What to expect: With the CME gap being above the price and the bullish divergence both in the futures 1h and the spot price 4h time frame you could expect at least a small bullish trend. Maybe you could say there is a bit of a double bottom too. This bullish trend could go up and fill the gap bring the price to $61-$61.5k Bearish scenario: Gaps don't need to be fill and if they do, they don't always fill right away so there could be a move down still. Considering the breakout from the wedge/triangle depending on how you draw it a low target is around $43k. Overall: I am leaning to the bullish side because I believe there is a good chance this drop is manipulation. The hash rate dropped because of a power outage in china and over 9000 bitcoins were moved to the binance exchange if I remember correctly which is Chinese to be probably sold. Soon after the sharp drop 22700 I’m not sure if that number is exact was pull out of the exchange. This could mean someone in china knew about the power outage and knew that bots would sell the hash rate drop and to get more BTC they sold at market and maybe shorted too to push the price down further. Then proceeded to pick up way more BTC then they started with. Comment what you think and follow if you liked the idea, it would help me.
CME:BTC1!Long
by Sicklezi
Gap TheoryThe gap theory is short and simple. Not everything needs to be lengthy and laborious. "Everything should be simple as possible, but not any simpler" Break-Away Gap Once a new cycle has begun and you see a breakaway gap in the STARTING of a move, you get confirmation of this new cycle. HOLD. Run-Away Gap Once the trend is continuing for some time and then you see a second gap, this is a confirmation that you are somewhere in the MIDDLE of the move, so you know a further movement in price is expected. HOLD. There is a possibility that you can get multiple runaway gaps. Exhaustion Gap After a move in price had already happened, a gap that signals the END of the move happens. If this is your 3rd gap on the, you should look very closely to distinguish if it is a runaway gap or exhaustion gap. SELL. How do you tell the difference between the exhaustion gap and the runaway gap? Easy, if after the gap happens the price shoot straight up without closing the gap in the next few days ---> runaway gap. HOLD. if after the gap happens the price is closing the gap in the next few days ---> exhaustion gap. SELL. If you like it, follow and like so it will be saved in your saved ideas for future reference.
AMEX:MJEducation
by ZoharCho
5
Bearish Dark Cloud Cover at a 0.618 Fib Retracement On the DailyYesterday TSLA went up to fill a gap before closing bearishly on the daily and ultimately forming a Dark Cloud Cover. This is a bearish signal that could take us down to fill some gaps on the downside, potentially going as low as $412; Any significant price action above the 0.786 retrace will negate this trade and any significant price action below the 55 Day Simple Moving Average will strengthen the validity of this trade.
NASDAQ:TSLAShort
by RizeSenpai
1
🔹$PFE 4H Technical Analysis PT 37.28🔸 $PFE 4H Cup & Handle Breakout. This is a **SOLID** setup for this week. I am looking at a 2 week swing for $PFE price target 37.28 on that solid gap fill. Now, the chart looks absolutely beautiful not only that but we have a catalyst play $PFE. We have the PDUFA date on April 28th. I am expecting a run up for that event as well as to fill the gap to the upside. 🔸 Swing* 36.50c 4/30 ( Looking To Get @ Open ) Really Cheap also looking to sell before the event or until we hit our price target on that gap.
NYSE:PFELong
by Firecycle114
1