Sunday, March 12, 2017

How I Made  +46.66%  Profit on $AVGO  in 5 Trading Sessions

Last week I had highlighted the details of a short term  Bullish Put Credit Spread Option Trade   on   $AVGO.  The stock was extended   +5%  beyond its ideal buy point of  $208.85  but was still trending along its  8 day ema (exponential moving average)   Market was in a   confirmed uptrend   and we were looking for ways to lower the risk of taking a position in an extended stock and instead use Stock Options strategies to profit from the momentum of the stock.  There was a detailed   "Trade Plan"   in place to exit for profit or for a loss.  The stock continued trading along its   8 day ema   after initially dropping 2 points on Monday.  On Friday the stock broke out in heavy volume to punch thru past our profit target.   Our initial target was to close out the trade when  +80%  of Credit  ($400)  was attained with   $990   at risk.  The stock blew past our target and we ended up with  +93%  of Credit  ($462)  and only  $990   at risk.  We made  +46.66%    of the amount risked within just 5 trading sessions.  Look over the archived post of Sunday March 5th to study the details of the trade and how I managed that trade with my   "Trade Plan"   in place.

Stocks on My Watch List

This will be a week when Janet Yellen will finally be  YELLING  on wednesday for a rate hike.  No one knows how the institutions will react.  They could derail the bullish momentum that we have enjoyed since the November 8th elections.  The financial sector has been a huge gainer and some institutions may choose to harvest their profits and others may decide to add to their positions instead.  I have however identified some stocks that I shall be monitoring this week.  They are:

  1. $ANET
  2. $AMAT
  3. $AVGO
  4. $MCHP
  5. $IDXX
  6. $ZION
  7. $ULTA
  8. $ATVI
  9. $CMA
  10. $BABA
  11. $SCHW
  12. $MBLY
Some of these stocks are extended beyond their ideal buy points. They may retrace to their buy points and some may present opportunities for profits with Low Risk Short Term Option Trades.  Asian markets are trending up as I am writing this post on Sunday night.  They seem to like what they saw as good news with our jobs report and our unemployment going down to 4.7%.  Oil is also looking to trend down to less than $45 a barrel.  This is good news for the US market on Monday morning.

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Amin

DISCLAIMER



Do not take a position unless you are prepared to sustain a TOTAL LOSS. Your loss could include the money you invested as well as commissions and transaction charges.


The Information I provide is for education and informational purposes only. The Information provided is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice. The Information provided is general in nature and is not specific to you or anyone else.


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