Monday, April 4, 2016

Elliott Wave Options Signal - SBH Put Diagonal

Elliott Wave Options Signal - SBH Put Diagonal

Sally Beauty Holdings, Inc. (SBH) has an ugly rally formation here.  After a long rally from around $22, it has pushed up in a large 3 wave move that is finishing off with ending diagonal.  This stock is ready to fall off a cliff.  Although I expect a sharp move, the most viable option strategy on this stock is a long put diagonal.  This is fine with me anyway because this stock can float and chop higher for a few more days or even a week or two before it declines.  Here is my trade:

Buy to Open SBH May 20/Jun 17 30/35 Put Diagonal @ $258

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PLEASE NOTE: THIS IS AN ELLIOTT WAVE BLOG EXPRESSING AN OPINION AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. TRADE AT YOUR OWN RISK.

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