Investing With Options header image ≡ Menu

Just Released: Get Your FREE Iron Condor Trading Toolkit


Click Here to Download

New Energy Trade

Update: That was fast-- I'm exiting for a loss (150-ish) if it breaks 2293

Falling wedge pattern, has regained the 5 day moving average, and is at a longer term support level (near) 21.

On the shorter term, it looks to be breaking out of its range.

1. Get long at these prices

2. Set a stop for 22.92 (yesterday's afternoon pivot low)

3. Reduce position at 24.50, move stop to break even.

I feel that this would be a reasonable time to buy some calls-- I am willing to accept time decay for the possibility of a larger move.

For this trade, I'm looking at +8 CHK Jan 10 Calls at 1.59

With a stop loss of 22.92, that puts us at a total delta risk of 150.

by Steven Place

Steven Place is the founder and head trader at investingwithoptions.com/