Trade Alert: Sell -25 Feb 2023 EOM 4300 calls at $7
Raised $8,679 in Premium for next months P&L.
Here's what changed for me today.
Yesterday I said if price breached 4055 I need to see it take out the red trend line. I've been seeing the beginnings of an ending diagonal for a while. The overlap in the beginning when I said these patterns are not going to put us in jeopardy of price getting away from us. Nonetheless price has rallied.
I was counting this as a 1-2, i-ii this morning. Wave iii of 3 is the strongest portion of a move. THIS MARKET SHOULD BE MOVING HIGHER AGGRESSIVELY...It's not. It's now overlapping again where it should be testing 4080-4090 and maybe even tagging 4100. Another thing weighing on my mind is so many charts I track, crypto included, are coming into full patterns off their lows needing a retrace. Sorry to switch gears so fast, but this chart should be showing signs of impulsivity today...and it's not.
Therefore, I have opened up an OTM money short call position mainly to hedge what I've been waiting for and that is a couple hundred point decline to open a short put position in size. If at anytime price breaks above the ENDING DIAGONAL TRENDLINES I'LL RE-EVALUATE by taking an outright long position.
This is a risky trade. I am not advocating shorting the market unless price continues to overlap as outlined above. Ending Diagonals will retrace to their origins. Therefore if confirmed we should decline in purple to 3840-3875 area minimum...and that could just be the "a" wave (in Black).
PS: This post will serve as my evening update as I have plans this evening. I'll answer DMs and Comments to this post.
Best to all,
Chris
Here's what changed for me today.
Yesterday I said if price breached 4055 I need to see it take out the red trend line. I've been seeing the beginnings of an ending diagonal for a while. The overlap in the beginning when I said these patterns are not going to put us in jeopardy of price getting away from us. Nonetheless price has rallied.
I was counting this as a 1-2, i-ii this morning. Wave iii of 3 is the strongest portion of a move. THIS MARKET SHOULD BE MOVING HIGHER AGGRESSIVELY...It's not. It's now overlapping again where it should be testing 4080-4090 and maybe even tagging 4100. Another thing weighing on my mind is so many charts I track, crypto included, are coming into full patterns off their lows needing a retrace. Sorry to switch gears so fast, but this chart should be showing signs of impulsivity today...and it's not.
Therefore, I have opened up an OTM money short call position mainly to hedge what I've been waiting for and that is a couple hundred point decline to open a short put position in size. If at anytime price breaks above the ENDING DIAGONAL TRENDLINES I'LL RE-EVALUATE by taking an outright long position.
This is a risky trade. I am not advocating shorting the market unless price continues to overlap as outlined above. Ending Diagonals will retrace to their origins. Therefore if confirmed we should decline in purple to 3840-3875 area minimum...and that could just be the "a" wave (in Black).
PS: This post will serve as my evening update as I have plans this evening. I'll answer DMs and Comments to this post.
Best to all,
Chris
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