RBLX ATH Break Long Entry Weekly Options Play.
Description
RBLX had an unexpected earnings beat and gapped up ~30% AH. A break and hold over 100.68 will mean supply is exhausted and trigger a long.
A close > 100.68 triggers a long.
Using Call Debit Spread, because profit is always limited by time.
Will look to enter at EOD.
Call Debit Spread
Tentative Levels on Chart
SL is a daily close < 100.68.
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/26 110C
SELL
11/26 125C
R/R & Break-evens vary on fill.
Long Call is placed at 110 for reasonable debit on position.
Short Call is placed at highest strike expiring EOM.
Manage Risk
Only invest what you are willing to lose
RBLX had an unexpected earnings beat and gapped up ~30% AH. A break and hold over 100.68 will mean supply is exhausted and trigger a long.
A close > 100.68 triggers a long.
Using Call Debit Spread, because profit is always limited by time.
Will look to enter at EOD.
Call Debit Spread
Tentative Levels on Chart
SL is a daily close < 100.68.
*Stops based off underlying stock price, not mark to market loss
The Trade
BUY
11/26 110C
SELL
11/26 125C
R/R & Break-evens vary on fill.
Long Call is placed at 110 for reasonable debit on position.
Short Call is placed at highest strike expiring EOM.
Manage Risk
Only invest what you are willing to lose
Operación activa:
Filled same week 125C @ 2 for the pile on play.
Operación activa:
Went for 11/19 110/120C's filled @ 2.9.
Max Loss < 110
Break-even @ 112.9
Max Gain > 120
Max Loss < 110
Break-even @ 112.9
Max Gain > 120
Operación activa:
The 125C was closed @ .75, -63%. Paid too high of a premium for it and closed IAW my risk tolerance.
Operación cerrada manualmente:
Closed at .76, -74%
I will see about putting in a reverse position EOD, looking for an entire retracement of earnings move, filling gap and touching the channel.
I will see about putting in a reverse position EOD, looking for an entire retracement of earnings move, filling gap and touching the channel.