This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Options, published on Monday, August 14, 2017.
Low Ball Technique
There is a trade opportunity based on a 1-2-3 Bottom Formation in the Sugar market. Today’s session low of 13.11 failed to surpass Friday’s low setting up the number three point of the formation. A break of today’s session high (13.58) triggers a long entry. The Stochastic indicator is showing a reversal in Momentum to the upside. The MACD indicator is showing a trend change to the upside as well. Anticipating the breakout and selecting a strike price within three of being in-the-money and below the initial target price of 15.21, the number two point of the formation.
Purchase the October 2017 Sugar 14.00 call for 30 points or $336, GTC.
Risk: Maximum Risk: $336, not including commissions and fees.
Reward: Maximum Profit: Unlimited, not including commissions and fees.
Expiration: September 15, 2017 (32 days)
October 2017 Sugar Chart from Bar Chart
Contact your Daniels Trading broker by phone or email to place this trade.
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
This material is conveyed as a solicitation for entering into a derivatives transaction.
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