Last of the 3.... A Short ShortLooking at the overall structure and just applying what I know about EURUSD behavior, it goes the wrong way first, so I think short from the major level at 1.1072 is a possible play for the price to move at least down to the breakout zone. Hourly is showing acknowledgement of the peak around the 1.106 starting rejection. Expecting price to run up and catch the entry, then drift back down slightly.
27 pips of risk, Hedge stop in place of Stop Loss. We never had a real stop run anywhere so far so a little cautious about it just running away yet, there are more orders to fill....
Hedgetrading
MAXN Options StrategyYoung Singaporean company Maxeon Solar Technologies makes solar panels and components for an international market that is facing a deepening energy crisis. Maxeon is found everywhere from Sunpower-branded products, developing projects, system integrators, residential and small-scale commercial customers.
Trying out Elliott Wave Theory combined with a very conservative hedged strategy just in case things go south in this market.
Buying 1 $17.5 CALL
Selling 1 $20 CALL
Selling 1 $5 PUT
Selling 2 $10 PUTS
Exp 3/17/23
Should make up to 10% (26% annualized) but also allow room for MAXN price to fall 47% (to $9.99, or the lowest level on my fibs) before losing any money.
Capital required for this strategy = $2498.30
What is Hedging ?🔵 Hedging
Investment banks and other institutions use call options as hedging instruments. Just like insurance, hedging with an option opposite your position helps to limit the amount of losses on the underlying instrument should an unforeseen event occur. Call options can be bought and used to hedge short stock portfolios, or sold to hedge against a pullback in long stock portfolios.
When an asset reaches a higher price, it usually attracts more attention from traders and investors, which pushes the market price even higher. This continues until a large number of sellers enter the market – for example, when an unforeseen event causes them to rethink the asset’s price. Once enough sellers are in the market, the momentum changes direction and will force an asset’s price lower.
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HARMONICS IN MINUTESThis style is Hedge trading, creating a full sized risk free position in both directions.
Closing 50% of each position at 2R creates a risk free position, should price move to the stop loss, profit for each position would be 0.75R
Closing 50% of each remaining position at 4R Secures 2R profit on all positions, should price move to the stop loss, profit for each position would be just over 1.9R
Closing 50% of each remaining position at 8R Secures 3R profit on all positions, should price move to the stop loss, profit for each position would be 2.875R