- the break even price $122
- potential gain ($10-$7)/$7 = 42.8%
- potential loss 100% (but you always can close position earlier to limit loss)
- The reason to choose it
- 100% seasonality positive in Dec
- note 1/22/2018 earning date
- the option date choosing next Jan is for more time value to decay
Saturday, December 9, 2017
12/9/2017 stock option pick
RCL (royal Caribbean cruise): long Jan/2018 115~125 call spread with around $7 premium
Wednesday, November 29, 2017
11/29/2017 stock option pick
AAPL: long call spread Feb, 2018 170~180 with cost $4.6~$5.00
- potential loss 100%
- potential gain 100%
- break even price around $175
- the price projected for apple in next Feb will be over $180
- suggestion: can close position earlier to take profit other than waiting to materialize the maximum 100% gain with potential risk (for example: when this spread runs to $7.5, 50% gain to take profit)
Sunday, November 26, 2017
11/26/2017 stock option pick
Google (GOOGL): long spread Jan 2018 $1030~$1060 call spread with $18/contract
- potential loss $18/contract, 100% loss
- potential gain $12/contract, 66% gain
- break even $1048
My personal opinion is not for investment purpose, but for education and illustartion
Tuesday, November 21, 2017
11/21/2017 stock option pick
CME Group (CME): long call spread Jan/2018 $140-$145 with $2.1, any price [$2~$2.2] can be a entry
- the potential maximum gain: ($5-$2.1)/$2.1 = 138%
- the potential ,maximum loss is 100%
- break even price: $142.1
- The Jan/2018 projection for CME price is around $145
Note: my personal opinion is not for investment, but for education and illustration
Monday, November 20, 2017
11/20/2017 weekly stock option pick
1. PYPL: long call spread Jan/2018 $72.5-$77.5 with $2.78, any price [$2.5~$2.8] can be a entry
- the potential maximum gain: ($5-$2.8)/$2.8 = 78.5%
- the potential ,maximum loss is 100%
- break even price: $75.3
- The Jan/2018 projection for PYPL price is around $77.5
Note: my personal opinion is not for investment, but for education and illustration
Saturday, November 11, 2017
10/11/2017 one insurance stock update
one insurance company broke out by nice price action after south east states' hurricane: travellers (TRV).
Note: my personal opinion is not for investment, but for education and illustration
- classic break out $130 level
- classic back test the break out level $130, then reverse up
- upside target moved up to $145.
- buyers' stop below $129.5
Note: my personal opinion is not for investment, but for education and illustration
Friday, November 10, 2017
11/10/2017 daily and weekly indices update
1. SP500:
- first weekly loss after 8 weeks winning streak
- inside day today from Thursday (11/9/2017)
- usually inside day is a positive sign this year
- strong resistance around 2585
- regaining 2585 by daily close will be a good sign for bull to regain the control
- vice versa to reverse down to test 2565 again
2. Nasdaq 100:
- still keep the weekly winning streak to 7 weeks
- inside day from Thursday (11/9/2017)
- usually inside day is a positive sign this year
- resistance around 6312
- regaining 6312 by daily close will be good sign for bull to regain the control
- vice versa to reverse down to test 6240~6248
3. Russell 2000:
- 5 weeks down in a row
- also inside day from Thursday (11/9/2017)
- usually inside day is a positive sign this year
- resistance around 1482~1485
- regaining 1482~1485 by daily close will be a good sign for bull to gain the control to reverse the recent down trend to uptrend
- vice versa to reverse down to test 1465~1467
4. Dow Industrial:
first weekly loss after 9 weeks winning streak
inside day today from Thursday (11/9/2017) but with red candle
resistance around 23475
- regaining 23475 by daily close will be a good sign for bull to regain the control
- vice versa to reverse down to test 23300
Note: my personal opinion is not for investment purpose, but for education and illustration
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