CP Long - Bull Channel - Support Play

2020년 10월 22일

CP LONG

CP was downgraded today most likely because of the ER miss from CNI. They are both Canadian railways companies so they play by sympathy. This will unlikely affect CP long term because its earnings is next year in January. CP has multiple upgrades to the 400s through out the day and also increased its dividends. So this is very bullish news moving forward. 🎉

Optimal Entry ✅
IMO I think right now is already a great entry. Market will most likely open red tomorrow so we will get an even better discount.
Entry1 314
Entry2 311
The supports and moving averages are good entry points. I will personally be watching a 52 level on the RSI daily for an entry. Mostly likely scale in the contracts until the best entries. 👍

PT1 317.5 💲
PT2 325
SL1 MA 25 (🧡 line) ⛔
SL2 ❤ supports on either charts
Contracts 📝
Entry 1: Buy the 11/20 320c and sell the 330 (should have a debit of around 3.6)
Entry 2: Buy the 11/20 move 10 strikes down on each
Safer but longer plays:
Buy the 12/18 330c and sell the 340 (debit around 5)
Single contracts: 12/18 320c @ 11

This is most likely a slow moving play. Patience is the game 😉 Slow and steady wins the race 📉