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%
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.
|OPTION CHAIN – CURRENT MONTH|
|OPT||Limit Premium||Target Price||Entry Gain||Capital Gain||PROFIT|
|OPTION CHAIN – SECOND MONTH|
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.
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.
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