A personal finance blog about trading, investing, and other wealth building strategies. Learn how to trade options, get trade ideas, and make money online from home.
AXP: Another bullish looking chart waiting to pop out
I own 100 shares of AXP at $41.36. I've held the position for a few days now and waiting for that pop. May look to enter a short call position too. Thoughts about options strategies to capture the move?
If you are aggresively bullish on AXP. I might sell the ATM puts in Feb '10 $41 for $1.70. If I put this play on I would use a stop at $40 where it looks like this name has put in some support. Breakeven price on this play would be $39.30.
Or if you want box in your risk you may consider selling a put spread. You would accomplish this by selling the ATM put mentioned above and at the same time buying a OTM put.
Volatility squeeze is popping. Selling half my shares into strength. Will look for continuation tomorrow to sell more stock and unload some of my calls.
If you are aggresively bullish on AXP. I might sell the ATM puts in Feb '10 $41 for $1.70. If I put this play on I would use a stop at $40 where it looks like this name has put in some support. Breakeven price on this play would be $39.30.
ReplyDeleteOr if you want box in your risk you may consider selling a put spread. You would accomplish this by selling the ATM put mentioned above and at the same time buying a OTM put.
ThanX jus decided to do a straight call play bought 4 Feb 10 $43 calls for $1.70. I'll let you know how it goes...
ReplyDeleteOh yeah earnings on 1/28 after the close.
ReplyDeleteVolatility squeeze is popping. Selling half my shares into strength. Will look for continuation tomorrow to sell more stock and unload some of my calls.
ReplyDelete