Forex Stock Exchange Forum
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Forex Stock Exchange Forum

Forum About Trading on Forex,Stock,Binary Options, CryptoCurrency and NFTs

You are not connected. Please login or register

Scorpio Bulkers Inc. (SALT)

Go down  Message [Page 1 of 1]

1Scorpio Bulkers Inc. (SALT) Empty Scorpio Bulkers Inc. (SALT) Mon Jan 23, 2017 11:05 am



Daily chart of Scorpio Bulkers Inc. (SALT), $7.55.

[You must be registered and logged in to see this image.]

Trade:  We recommend selling 10 Jun $5 naked puts (143 DTE) for a net credit of $500 or better (closed at $.45 x .50, but the daily is extended short-term so should get filled at higher prices on a pull back).  Note:  Although we typically prefer selling shorter-term options (days to weeks) to get paid for theta (time) decay, this still provides over 1.5% ROI/month on margin with the strike price being 34% away!

Strategy:  After a robust breakout in the stock and sector last November, SALT retraced, consolidated, and broke out last Friday.  The volume (money) into the stock and sector are increasing with bullish weekly and monthly charts.

Max Gain:   $500 credit received.
Max Loss:  Cost basis is $4.50/share if assigned (34% cushion), but will be less with stop posted.
Breakeven:  $4.50/share.
Stop Loss:  $5.48.

source: mastertrader

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum