HomeTradingEarningsSPY-FB-NFLX-10-5-15 follow up

When the market gives you a gift, you take it and run with it.

SPY opened up above 195 , my main condition as per previous post, and the first 30min bar closed above the 127%XA, and up it was rest of the day. FB a winning trade as well, and NFLX the largest gainer.

We had the levels and the conditions to go long triggered early in the day. All left to do was execution of the trade.

I don’t like to show trades in hindsight, we all can pick out winning trades after the fact. But since it was pre-announced, I’d like to show how it developed throughout the day and how the harmonic indicator can help you in finding 2nd entries, and when to protect your profit.

Not until just before 10AM did we get a good signal on NFLX. just over $200k in Call buying just before an entry for a CD leg higher.The 10:12 bar spiked through its AB=CD PRZ, reason to believe it goes higher and follow the XA projections. After that you raise your stop to the PRZ level, and you can relax.

We mentioned the 110-111 range as a possible PRZ target on the 30min chart in our previous post The 200 and 261.8%XA projection on the 1Min chart were inline with that target. : profit taking/protecting area

NFLX-10-5-15-1min1

When we see such a strong rally, to look for a 2nd entry, you should wait for a bullish PRZ on small Timeframe.

Such an opportunity presented itself at 1:06 when Netflix completed a bullish XABCD PRZ, where the AB=CD PRZ was inline with the 127%XA

NFLX-10-5-15-1min2

And this reversal resulted in yet another pattern, with the 161.8%XA near the HOD.

NFLX-10-5-15-1min3

Netflix has its earnings next week on the 14th. I decided to play earnings with a butterfly trade. We still have more then enough time, and for now I opted to go with a 115/120/125 Call Butterfly for just $0.40.

If up to the 13th Netflix is trading roughly between 108 and 132 we’re looking at profit. on the 14th this window will narrow to about 115.4 and 124.6, with max profit at 120.

Since these Butterfly strategies are relatively cheap, I might adjust this one, or add another prior to earnings. read up on this earnings strategy here.

NFLX-10-5-15-bfly

 

 

 

 

 

 

 

 

 

 


Comments

SPY-FB-NFLX-10-5-15 follow up — 1 Comment

  1. Pingback: SPY-FB-NFLX 10-8-15 2nd follow up | Trade weekly options

Leave a Reply

Your email address will not be published. Required fields are marked *