$EDU short put vertical 73% PoP for credit at support

2021년 6월 22일

EDU short put vertical 73% PoP for credit at support

New Oriental Education & Tech Group had a big move and a big correction.
It's time to playing some bullish move.

Weekly timeframe:

Oversold on weeky and on daily too, sitting on the bullish trendline.

Daily timeframe:

Oversold too, bullish divergence.




Playing short put vertical here, because IVR is relative high: 60.


Max profit: $236
PoP50: 73%
Profit Target relative to my Buying Power: 30%
Max loss with my risk management: ~$150


Req. Buy Power: $764 (max loss without management before expiry, no way to let this happen!)
Tasty IVR: 60 (relative high)
Expiry: 24 days


Buy 4 EDU Jul16' 5 PUT
Sell 4 EDU Jul16' 7.5 PUT

Short put spread for 0.6cr each, because IVR is relative high.

COMMENT: Because of very low RSI and daily divergence it could be a good choice into my investment bag/portfolio too.

Stop/my risk management: Closing immediately if daily candle is closing BELOW the box, max loss in my calculations in this case could be 150$. Probability of loss in this way: ~27% .

Take profit strategy: 65% of max.profit in this case with auto sell order at 0.20db. Probability of profit this way: ~73%.

Of course I'll not wait until expiry in any case!



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