BA Wedge Break Weekly Options PlayDescription
Watching this wedge for BA. A close over the descending trendline in the wedge will trigger a long.
Seeing bullish convergence on weekly MACD.
Some good news has come out in the last couple weeks, indicating fine time for a supply/demand shift.
Using A call debit spread, because profits are always limited by time.
Call Debit Spread
Tentative Levels on Chart
SL is a daily close back in the wedge.
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/19 225C
SELL
11/19 240C
R/R & Breakevens vary on fill.
The long call is placed ATM for higher chance of profit,
The short call is placed to get the desired debit per contract.
The front-week options play is to capitalize on a swift movement following the break. I will look at opening some 2 or 3-month options as well, because its a large pattern.
Manage Risk
Only invest what you are willing to lose