Our carry over positions from last week – SEPT OPTION CHAIN

MSFT BOT LONG CALL @ 0.95/38

TICKER – MSFT

MSFT is consolidated currently, trading at 44.89.  We put in a Limit Order last week for a Long Call @ 0.95/34 x2 contracts.  Limit entry reduced our cost basis and has since buffered any negation of profits taken.  MSFT broke out last Tuesday (8/12), maintaining a textbook upward trend over the past 5 days; +4.31%

LIQUIDITY TREND IV SIGNAL
1.17% HIGH BULL CALL
EQUITY
Last $44.90 Average $44.87
Net $0.11 Offset $48.99
Open-Last -$0.04 Decay 0.28%
Price H/L $45.58 $44.50 $44.88

Covered Return remains favorable at 0.56 versus the Inverse at 0.44.  Note the high “Liquidity” at 1.17%.  This validation that MSFT will continue a Bullish trend as it nears its Dividend payout tomorrow, August 19th.  We’ll monitor the Liquidity post dividend payout, typical for a drop in price.

DERIVATIVES
Covered Return 0.56 Inverse 0.44 Monetized 1.12
OPTION CHAIN – CURRENT MONTH
OPT Limit Premium Target Price Entry Gain Capital Gain PROFIT
CALL $0.94 $2.07 $33.18 $407.24 $374.06
PUT $0.90 $0.92 -$0.72 $175.59 $176.31
OPTION CHAIN – SECOND MONTH
CALL $0.99 $1.98 $13.20 -$6.46 -$19.65
PUT $1.34 $1.44 $0.01 -$7.36 -$7.37

 

TICKER –WFM

WFM is regaining territory loss since last Friday.  We put in a LONG CALL Limit Order @ 1.51/38 x2 contracts that was taken last Thursday.  That was a bit high for a limit order since the Bid/Ask spread has been quite exaggerated.  Yet this morning we’ve seen a tightening up with bursts of upward activity.

LIQUIDITY TREND IV SIGNAL
0.36% LOW BULL CALL
EQUITY
Last $38.96 Average $38.73
Net $0.43 Offset $42.89
Open-Last $0.17 Decay 0.27%
Price H/L $40.01 $38.32 $38.78

WFM shows a low liquidity which explains the large Bid/Ask premium price spread.  However, the “Decay” ratio is highly favorable at 0.27% (the lower the number the better in attaining our target price goal).

Offset Price at 42.89 also provides us a signal that there is more upward territory to be taken.  The caveat is there is a “double top” forming today at 36.97.  If there is a breakthrough, the next resistance price (based on our Fibonacci EMA overlays) is 41.18.  the 42.89 target price is just below our Fibonacci EMA 144.

(DISCLAIMER: THIS IS STRICTLY FOR EDUCATIONAL PURPOSES. WE MAKE NO RECOMMENDATIONS FOR TRADING THESE POSTED EQUITIES NOR ARE PROMOTING ANY BROKERAGES OR FINANCIAL SERVICES. THUS THIS NOTICE RELIEVES US FROM ANY LIABILITY ON THE PART OF THE READER’S DECISIONS TO TRADE AND OR INVEST IN THE POSTED EQUITIES.)

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