META Retested Falling Wedge and SMA 50 Roll Up - Calls

Very similar setup to the Nasdaq wedge that has already broken out and rallied. Price is near lower end of recent regression trend. Seasonally speaking, more upside is likely based on previous 2 years. With price from 50 bars back dropping quickly, the 50-day SMA will flatten out suddenly and has a lot roll up potential. P/E ratio of 13.34 is hilariously low. The main thing is the wedge. “In wedge we trust” if you’re buying a call or calls like I probably am.

Strike: $170
Exp: Sept 16, 2022

การซื้อขายยังคงดำเนินอยู่:

Purchased two calls at $410 a piece at 10:28am EST.

การซื้อขายยังคงดำเนินอยู่:

Zuckerberg was a guest on Rogan today. Nasdaq bounced off previous high and major trendline which it was retesting.
+3.38% day for Meta, so far so good
Here's NQ:

การซื้อขายยังคงดำเนินอยู่:

Big selloff today
NQ down 4.54%
META down 4.15%
not looking like a promising trade right now

การซื้อขายยังคงดำเนินอยู่:

Today was a +4.37% day which is hopeful. There are 5 trading days left until expiration and price is 2.86% below my breakeven level.

I'm not sure what the plan is at this point. I might close at breakeven, perhaps I'll close one off at breakeven and let the other ride. Need to analyze indexes further.

ปิดการเทรด ด้วยตนเอง:

Close at breakeven. The trade didn't go as planned and it was the right decision to get out without any losses with only 4 days left until expiration which falls on quad witching. Theta burn risk is too high.

ความคิดเห็น:

I got out just in time.