LONG Options Trading: Morgan Stanley(MS) Buy Call $49 Exp: 7/19
Understanding The trade:
As an options trader my goal is to identify trend change and utilize a breakout strategy to leverage profit off of major trend changes with minimal risk. Even though this contract does not expire till 7/19 I will be looking to take profit by early july(see green box) as the rate of decay factor starts to come into play as the contract approaches expiry. This should correlate nicely with the Fib Retracement lvl of .786. If you have any questions please feel free to comment below and follow. Thank you and trade safe.
Reasons For Trade:
• Bounced off the Feb & Mar 19' low of 40~41 lvl
• Broken downward channel (1D chart May 1st -June 3rd)
• Broken RSI Channel
• RSI Overbought > 30
Trade Parameters:
• Broker: Robinhood
• Cost For Entry: Free
• Contracts: 20
• Entry Price: .10
• Risk: $200
• Reward: $600
• ROI: 300%
• Risk/Reward Ratio: 1:3
As an options trader my goal is to identify trend change and utilize a breakout strategy to leverage profit off of major trend changes with minimal risk. Even though this contract does not expire till 7/19 I will be looking to take profit by early july(see green box) as the rate of decay factor starts to come into play as the contract approaches expiry. This should correlate nicely with the Fib Retracement lvl of .786. If you have any questions please feel free to comment below and follow. Thank you and trade safe.
Reasons For Trade:
• Bounced off the Feb & Mar 19' low of 40~41 lvl
• Broken downward channel (1D chart May 1st -June 3rd)
• Broken RSI Channel
• RSI Overbought > 30
Trade Parameters:
• Broker: Robinhood
• Cost For Entry: Free
• Contracts: 20
• Entry Price: .10
• Risk: $200
• Reward: $600
• ROI: 300%
• Risk/Reward Ratio: 1:3
交易手动结束:
Trade Closed:
• Broker: Robinhood
• Cost For Entry: Free
• Contracts: 20
• Entry Price: .10
• Exit Price: .18
• Profit: $180
• ROI: 80%
• Broker: Robinhood
• Cost For Entry: Free
• Contracts: 20
• Entry Price: .10
• Exit Price: .18
• Profit: $180
• ROI: 80%