Today's setup is in a hotel name that has been getting clobbered as of late and may be on the verge of completing a major topping pattern.
Unless the broader market sticks a landing soon and rallies hard, lifting all boats with it, I have a hard time believing this stock doesn't have further to fall.
Today's trade is one of those setups where if the bulls can't stick this landing (making it a good buy), then it's goodbye and good night.
I'm betting on the latter. But being mindful that it could in fact be a good time to buy for those brave enough to step in, I'll be getting short with a defined risk put debit spread.
Today's trade is in a therapeutics name that continues to press into new highs in spite of all the bearishness that the broader stock indexes are suggesting.
And if you look at the implied volatlity in the options, it seems that traders are skeptical that the trend can continue.
Today's trade is a similar bet to yesterday's trade. With $VIX in the 20s and big caps putting in short term bottoms at key pivot points, these are opportunities for opportunistic put spread sellers.
Today's trade is in a stock that recently announced earnings. The reaction was muted, which I think is a good thing. It left the chart sitting right where I'd like it to be, holding the recent lows of a 4-week pullback.
The beauty is that this gives me a nearby risk management level, so I'll have an opportunity to keep losses to a minimum if the rebound doesn't materialize.
Even though this stock blasted off following earnings last week, it might just be getting started. The second "take" is what I'm here for.
However, with the immediate catalyst in the rear-view mirror, I will proceed going forward under the assumption that there may be some well-deserved consolidation in store while the stock works its way higher over the next 6 months.
So I'm going to attempt to get paid to ride out any potential wait.
Today's trade is in a name that JC liked on his recent Mid-Month conference call.
The stock is hanging around the upper end of a "box" it's been in, just below all-time highs. And with earnings coming up in a couple of weeks, it feels to me like it's just waiting for that "all clear" catalyst to allow it to break higher.
While me and the All Star Charts gang have been pounding the table on China for several weeks now, it is still a mostly hated and certainly misunderstood trend. But that's mostly because people are reading the political headlines and ignoring the only thing that doesn't lie to us -- price.
So I'm putting on a trade that might take some heat, and I'm in it to win it.