110% Definitely a BULLISH TRADE
Hey Traders! Here’s what we’re covering today:
- Big Blue Explodes Higher – IBM Vertical Call Spread
- New Video – 7 Reasons IBM Trades Higher
- Redline Trades – KEY holds the Profits
IBM Unusual Options Activity Trade
This is “Definitely a Bullish Trade,” shares Stacy Brovitz.
After IBM's last earnings call, the stock dropped 10%.
Masters in Trading noticed Unusual Options Activity on the Calls and Puts.
Was this a bullish trade or bearish?
- Realized Volatility vs Implied Volatility
- IBM Represents Broad Market Risk
- Dollar Exposure – the dollar weakens their profits increase
- Unusual Trading Activity out to January
- Lots of time
- Excellent Risk vs Reward
- Optimal Level to Get Long IBM
[NEW VIDEO] 7 Reasons WHY IBM Trades Higher
The Next REDLINE Trade Released Friday at 10 am ET
The trades we share Fridays called the “redlined” names, see excessive Open Interest and Volume relative to that stock's overall outstanding tradable shares. We look at volume and open interest relative to a stock's overall float.
10/21 REDLINE MEMBER TRADE – $KEY – Large Regional Bank
Trade Idea: Consider Buying December 17 strike calls for $.50. If a trader buys 10 options for $.50 = Risk = $500.
Reward = Unlimited
Reasons for the Trade
- 55 days until expiry
- Fixed amount of risk + fixed amount of time
- Interest Rate Sensitive
- Bullish Options Flow Nov 16 call strike
- Relative Value Play vs other less expensive regional banks $FITB, $CFB, $SNV, $HBAN & $BMO
11/02 $KEY – 1.5 weeks later, $KEY December 17 strike options trade $1.60.
- RISK = $500
- 1 WEEK LATER = $1600
Masters in Trading Digest - Issue 134
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Every Sunday, we share 3 fresh trade ideas with all Masters in Trading Members. Join today and get Friday’s REDLINE Trade.
Grab a one-month options trial and don’t miss the next redline trade.
The next issue will be released on Friday.
Until then, trade smart.
Thanks for reading,
Jonathan Rose
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