Looking for BreakoutGap stock finding long term congestion support at the bottom of triangle. Looking for a possible upside breakout.
GPS trade ideas
GPSAfter gap down, Up trend start, now UP triangle formed
If price break out @32.40, we can see continuation of the up trend
Always remember about false break - if false break out of @32.40 happens and the price will return back into the triangle, you need to close position immediately.
After 5 days, Gap finally broke..giving a nice profit6 days ago Gap struggled to continue after a 1 month upward trend..
It halted its steady course at $34.21
This was an excellent sign for traders to short it...
It took a long, hard and struggling 5 days of patience for Gap to finally break and validate this trading idea.
GAP IncNice price movement gives another long trade opportunity as Elliot impulse and correction waves have finished, additionally, completed inverted SHS pattern confirms upward movement. on Stochastic oversold, now what we need is to watch for good bullish candlestick before opening position. On SPx500 also bullish breakout.
GPS Bullish CypherGPS is currently forming a bullish cypher. The D leg of the cypher was initiated by the completion of a bearish AB=CD pattern. I purchased a few OTM puts at the completion of the AB=CD pattern and will keep them until price action approaches the the potential reversal zone of the cypher pattern.
$GPS hasn't comeback yet; not bullish; con call closed 30 storesbear channel
support levels to watch
30.30
29.71
28.42
Earnings playThe Coppock curve has been broadening in the last few weeks - this could be showing a potential swing trade. Also, the stock has a 50 MA resistance which could be a defining moment if the earnings report is a beat. Furthermore, the stock has not really shown any chart pattern in the last few months, but the volume has been decreasing ever since the stock jumped. So, I have decided to hedge this trade.
Bearish on GPSThe open interest (OI) on the 15-Sep-17 21.00 strike increased by 15 call contracts and 16,554 puts. The total OI for the expiration was increased by 17,661.
TRADE IDEA: GPS 21/25/25/29 IRON FLYHigh implied volatility rank, high implied volatility, earnings/volatility contraction play ... .
Metrics:
Max Profit: $203/contract
Max Loss/Buying Power Effect: $197/contract
Break Evens: 22.97/27.03
Delta: -6.38
Theta: 2.03
Notes: I'll shoot to take this off at 25% max profit ... .
TRADE IDEA: GPS JULY 1ST 17.5 SHORT STRADDLEOne of the few earnings plays this season that meets my >70 implied volatility rank, >50 implied volatility criteria -- GPS. It announces on Thursday after market hours, but I won't have time to fiddle with it then, so I'm shooting for a fill here. I looked at both an iron condor and a short strangle, but those didn't have enough juice in them to make them worthwhile given the price of the underlying. I'm also going farther out than usual for an earnings play, as I generally like to give straddles greater leeway to work themselves out with time (although I'm naturally hoping we get beaucoup volatility contraction post-earnings such that I can take it off fairly immediately).
Metrics:
Probability of Profit: 56%
Max Profit: $208/contract
Max Loss/Buying Power Effect: Undefined/~$350
Theta: 2.24/contract
Delta: -3.3/contract
Break Evens: 15.42/19.58
Notes: A short straddle is a short call and short put at the same strike ... . Unlike a strangle, I'll look to manage this at 25% max profit because the "profit zone" is somewhat narrower as compared to an iron condor or short strangle ... .
long term short death of retail beloe cloud and 50diversify between short and long- see our book on amazon for reasons why same name retail weak macys report bad-money flow decreasing-cci and percent r at bottom-buy stop 50
GAP INC is another retailer in the bear marketSales productivity today (blended) is in excess of $400/foot. In past recessions it's dropped down closer to $360/foot. And on a go-forward basis, with increasing competition from Uniqlo, H&M, and not to mention little ol' Primark, we think that GPS is just structurally unable to compete -- especially at a 12%+ margin structure when we're late in the economic cycle.
We're fully aware that the stock looks "cheap" (whatever that means) at 10x earnings. But take sales productivity down by 15%-20% and the fixed cost deleverage takes earnings per share negative. Not so "cheap" on those numbers.
Short Green into an overbought close,
GPS --The gap to close the gap and beyondThe break of $39.50 after post-earnings dip suggests potential upside to test $42 and may suit an OTM bought call. There may be some resistance at $41 so a trade for those who are nimble. Tight trail on move up
GPS (Daily). "Mind the Gap"Gap Inc. (Daily).
1 year Double Top. ( 8/13 - 8/14).
Gapped down on heavy volume. breaking 200 sma, just under Wedge, breaking the 2011 uptrend_line. Potential Wolfe Waves 5 ( nested ).
Vs S&P500 broke down, under support. Under_performing. Weak Oversold bounce.
52wk Range : 35.46 - 46.85
(F) Total Revenue, seems to have stalled, Free Cash flow may be at risk, due to larger than expected store investment. Regarding the International Business side, may be affected somewhat by the stronger USD, due to declining exports, coupled with weak demand by EU customers. Earnings due, 20/11.
Target_1 : 34.70
Target_2 : 31 (1-4 line) 50% retracement.
Trader Takes Big Bullish Bet in GPSThe Gap, Inc. operates as an apparel retail company worldwide. It provides apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy. Yesterday we saw a HUGE bullish bet in GPS to the upside as a trader bought 4,000 GPS May 40 Calls for $.59 and I jumped in on these Calls as the price was through the offer. A trader thinks the stock can get back into the Ichimoku Cloud on the daily within the next month. Lets look at the trade I took:
The Trade: I bought the GPS May 40 Calls for $.60
Risk: $60 per 1 lot
Reward: Unlimited
Targets: $.75, $.90, $1.10 and $1.30
Greeks of this Trade:
Delta: Long
Gamma: Long
Theta: Short
Vega: Long
