$Direxion Daily S&P Biotech Bull 3x Shares ETF (LABU.US)$ fo...
$Direxion Daily S&P Biotech Bull 3x Shares ETF(LABU.US$ for those that are looking for what could be a very short-term option play on the put side. I bring you this leveraged ETF. we have key economic numbers coming out tomorrow and Friday if anything is showing the economy is doing better than expected or that inflation has ticked slightly higher from a price standpoint we're going to get whacked in the market. if you look at this chart this is a perfect chart on a daily basis for channel surfing I've traded it several times I'm not a big put buyer myself personally I'm more of a optimistic pera bull. however stocks go up stocks go down baskets of stocks go up and down and leverage baskets their movements are magnified significantly. so if you have discretionary money and you understand the risks of when you buy a put you pretty much lost all your money you have to think of it that way should we see any type of bad news this basket is going to retrace about $12 down very quickly and your options are g
oing to go up about 200 to 300%. there's no time value in these options because they expire on Friday. next Friday's options the 19th I think are a better more conservative put option play because you're going to give yourself enough time to have several days of retracement lower and I think it'd be about a as I said about a 12 $13 drop it stays right in the channel and you can pick whatever option relative to how much you want to risk. when it does fall though and it will rest assure I don't see a breakout coming you can buy it long again because this channel has lasted a very long time frame so it's about a 12 to 15% return from the lower Bollinger band to the upper band and people have been trading it back and forth like a ping pong ball up and down
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
35+ yrs in the trenches, raised tens of millions for start ups, syndicate ipo's, yrs on trading desk mkt maker.
918Followers
11Following
6894Visitors
Follow
10baggerbamm OP : 121.70 is the upper resistance we only broke the upper Bollinger band one time and that was back in June 12 and then it came right back down.
10baggerbamm OP : well I was wrong on that option play.. it broke out today to the upside with CPI and tomorrow's PPI