3 APR 20 63C
Market panic sold all last week, eventually taking down utilities which are typically a safe haven play. This bad boy is almost never oversold. I thought the market would bounce here as many securities are at support. Now whether this marks a V bottom or merely a dead cat remains to be seen, but I think Utes will do well if the market grinds out a base of high volatility sideways action and funds are more likely to rotate towards defensive stocks in general.
Method
RSI Oversold (22)
Bollinger Band pierced (2/27-2/28)
Pin candle reversing off strong support at $61 area
5Wk Expiry
Risk / Reward = 3-4R
Money Management
Risked 5%
Exit Strategy
$68 is the logical resistance and may coincide with the 20dma
*I took this screenshot at the end of the day, I entered the trade right around $62.95
UPDATE
Sold a bit too early. I have no faith in the market right now, but I'll take another win just the same.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2020-03-02 09:39:56 | 3 APR 20 63 CALL | buy | $1.650 | long |
2020-03-03 11:32:51 | 3 APR 20 63 CALL | sell | $3.350 | 0 |
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