LaurenTrading

LaurenTrading

The Czech Republic is poised to strengthen against the British Pound for the following reasons. The Czech Republic is uniquely positioned to recover better than the United Kingdom as an advanced manufacturing-oriented country, predominately producing cars, trains and engineering equipment. Following the one-time shock effect of the COVID-induced public health and...

LaurenTrading

We are closing out our 90/95 bull call spread, earning a debit of 4.99 by selling the 90 Cs and buying back the 95 Cs. We have made a profit of 49.7/contract, with a maximum potential profit of 50. The potential possible gains of holding the position are nearly negligible, so we are taking the successful trade and closing it out now, to best preserve strong...

LaurenTrading

Wedges are reversal patterns. A clear downward-sloping channel is interrupting a slight uptrend, so, on a breakout, we will take a bullish position. Conditional on high volume, our price target is half the height of the wedge, With a height of 7.70, the height of the breakout will be 3.85 above the upper trend line at the point of penetration. We are watching to...

LaurenTrading

We purchased an at the money straddle for a small debit of only 3.22. This trade is notably cheap because the IVR is extremely low: 2%. Being a long straddle (buying the calls and puts at 165), we are giving ourself unlimited profit, risking a limited $322 per contract. We take our neutral position because of the positive characteristics of the trade itself, but...

LaurenTrading

With a moderate IVR of 32.3, it makes sense to enter into a short strangle, where we are writing both the 45 calls and puts with the August 9th expiry. This trade does have unlimited risk, but does earn a profit of 550 per contract when the underlying security, Weibo, a Chinese Internet Technology firm, stays exactly at the k of 45. Because of the priced-in...

LaurenTrading

We maintain a bearish outlook on the entire market, and are using the 298/299 call credit vertical to assume our bearish position. We are selling the 298 calls while simultaneously longing the 299 calls to execute a risk-defined trade. With a breakeven of 298.37, we make our maximum profit of $37 per contract when the underlying price drops below that of the short...

LaurenTrading

This double bottom pattern pattern describes a change in trend, and thus a reversal of momentum, from a previous downtrend. This changes the prior leading price action, switching from the downward movements and indicating the bullish up-moves ahead. As a typical double bottom, it looks like the letter "W". We advise a long position with the price target equal to...

LaurenTrading

CME's front month Bitcoin Futures are poised for a bullish breakout and steep positive movement. After a downtrend, the futures have consolidated and started to form a pennant shape, which indicates that there will be a breakout and then a substantial up-move. The pennant has been formed with a series of retested resistance on top of the candles and sequential...

LaurenTrading

This ascending triangle on the XRP mkt cap chart indicates a bullish sentiment of increasing market cap is on its way. The accumulation pattern, regardless of where it forms, is usually a signal of impending bullish movement. The projected market cap target is equal to the height of the height of the triangle, which is equivalent to a 10% movement. Upon...

LaurenTrading

We identify a clear sideways channel on the Nikkei 225 index that aligns with the .236 and .786 retracements. This ensues a particular statistical significance, and strengthens the support and resistance levels. Once a break occurs to either direction on high volume, we are taking a position that aligns with the movement of the breakout: either continuing a...

LaurenTrading

We have not yet developed a trade around this, but we do note the clear inverse head and shoulders pattern that has played out. Following the penetration of the neckline, there was a bullish breakout, followed by a bull flag (a trend of decreasing highs and decreasing lows). After there is a significant breakout on sufficient volume, we will assume a bullish...

LaurenTrading

Citibank has been trading within a horizontal range and sideways channel between 65.50 and 69 for the past fourteen trading days. Because of this, we are shorting the iron condor by writing the 69 calls and 65.5 puts for the initial strangle, and going half a dollar out on each side to acquire the protection (longing the 69.5 calls and 65 puts), thus turning the...

LaurenTrading

AIG currently is trading with an IV30 of 19.6, making its IV Rank 21.8. This low rank indicates that the options will be cheap, and encourages debit spreads, regardless of being bullish or bearish. These spreads will profit when volatility mean-reverts to higher levels. Because of this well-developed bear flag, we are expecting a continuation of the prior...

LaurenTrading

This nearly ATM July 5th IC on McDonald's is technically driven. For the past 10 trading days, MCD's open and closes have both stayed within the parallel channel range of 203.73 and 206.16. With a great risk/reward ratio, we are entering into a short iron condor on the July 5th contracts, 8 trading days away, with a maximum profit of 147 with a mere, limited max...

LaurenTrading

We are taking a bearish position in SPY, S&P 500 ETF that represents 1/10th of the broad-market SPX. We are taking a bearish positions for both fundamental and technical reasons. Our position is a bear put spread with expiry this Friday. We are writing the 296 puts and buying the 297 puts for a total debit of .73 per contract. Per contract, the max profit is $27...

LaurenTrading

There is a symmetric triangle nearing its apex on Ripple's XRP/USD chart. There is likely to be a strong breakout in either direction from this apex. If this breakout occurs on heavy volume, we are extremely confident that the ensued trend will continue to strengthen. We consider "heavy volume" to be anything over 5 million contracts within a 2 hour bar. If there...

LaurenTrading

We are bearish on ETH/USD because Ethereum is trading within the up flag as a type of consolidation following the initiation of a downtrend following a triple top pattern. The downtrend from the triple top is the flagpole of the bearish flag pattern. Following the sharp down movement after the triple top, ETH has been trading within a bearish flag. Once there is a...

LaurenTrading

Cannabis stocks have the possibility to move a lot in a short period of time, as regulatory changes on whims have huge impact on the market size to which Cannabis companies can sell their products. Although our stance is that the cannabis industry is likely to become even more volatile as more regulatory developments and sector-wide shake-outs leave only the...