berlucid.blogg.se - Triangle pattern stock charts

The initial margin required should only be around $300 to $600, so you’re looking at a potential 10% to 20% return for a trade that currently offers an 86% chance of success. If it does, you’ll capture the max gain of $65 per contract.

The Trade: Sell the January $20 puts for approximately 65 cents.Ĭonsider this a bet that the stock sits above $20 at expiration. Here’s my high probability trade of choice. Its higher implied volatility translates into a handsome payday for those willing to sell premium.

You can do the same thing with options if you’re using multiple contracts.Īt $26, PLTR stock is cheap enough to make naked puts tempting. Finally, if we push above the pivot high, you acquire the final 100 shares.īy pyramiding into Palantir stock like this, your position is smallest when you have the least amount of confirmation, yet builds in size as the stock proves itself. Then, once prices rise above the trendline, you buy another 100 shares. For instance, if you’re looking to purchase 300 shares of stock, perhaps you enter the first 100 shares now. Of course, if you’re entering multiple options contracts or buying a modest number of shares, you could use all three entry techniques and scale-in. This provides the most confirmation of an upside surge but offers the worst price.

Wait for prices to rise above the old pivot high of $31.

This provides some evidence that buyers have finally broken the stalemate while not waiting too long before deploying a bull trade.

Wait for prices to rise above the descending trendline.

This will give you the best price but the least amount of confirmation.

Enter now in anticipation of an upside break.

In timing new entries, you have three choices: