$DIS - DISNEY - LONG SETUP USING CALLS - #tradingsignals

METHOD: Long DISNEY {price at entry 147.59} via:
+2 DIS 20 DEC 19 144 CALL @3.80 ; Trading with 0.21 of extrinsic value, well in the money.

STRATEGIES: Using DIS day chart:

• The 20/50 Mean green cloud contracts, and we can look for a new expanding cloud to form for a long.
  
• The Fisher Transform bounce signal appearing somewhat near the mean (after the reversion on the earnings bump).
  

TACTICS: The plan in terms of stock price:

• STOP is price < 144
  
• TGT1 153 scale; TGT2 157 to exit
  
• Trail option price to Break Even once stock price > 150; OR consider scaling as green cloud becomes large
  
• We may let the Fisher Transform and 20/50 mean together take us out technically for whatever we get win or lose.
  

NOTES:

• Not always do mean reversions get back to the mean in view.
  
• Depending on figuring, it could have touched some mean perfectly, but it isn't important.
  
• We look for the signals near the mean as we consider the mean elastic or one of many possible means.
  

Will update in comments,
B3
d^.^b

Trade active:

Filled.

Comment:

Price is not continuing up today. Moved stop to the low of the day which is price = 146.50. Cutting any more losses from the week.

Comment:

Hung in there. Still holding and dumping on first sign of weakness Monday.

Trade active:

Have to roll or bail this week. I sold ATM calls against these held ITM calls. This lowers my break even for the week to the current price... so from here at this losing point, it is actually a profit on decay if price goes sideways. If price looks to continue upward this week at any time, I will roll the spread.

Trade closed manually:

Star Wars movie gets some pretty tough reviews. Rated second worst in the series just in front of the Jar-Jar debacle. -- I have chosen not to roll this sideways trade. Exiting for the current position PL which is -$75 loss; it expires tomorrow anyway with no real upside for me to hold.