Rejected at 200D SMA with bearish engulfing candlestick reversal pattern. Expect to move in bearish direction to the next support of $120. Medium term range bound between $120 and $130.
- Strategy: Short Term Directional Bearish Trade.
- Target: $120
- Short Call Spread BA 125/130 Oct 2014 (2 contracts)
- Max gain @ expiration $536
- Max loss @ expiration $464
- B/E @ expiration $127.65
- Reward vs Risk (RoC) = 1.15
- Probability OTM (short leg) = 43.69%
- Profit target = $364 (at $120 support)
- Exit Conditions:
- When there is a trend reversal at the support ($120)
- Break $130 resistance.
- Reach 80% of Max Profit (ie. $429)
Original Post by Marubozu My Stocks Investing Journey