Tuesday, April 5, 2016

Elliott Wave Options Signals - Closed WCN Spread at 39% Profit

Elliott Wave Options Signals - Closed WCN Spread at 39% Profit

WCN wasted no time shooting lower to my projected target, and beyond this morning in a strong wave ((3)).  It will probably flop around in a 4th wave for a while before continuing lower, but the easy money is already out of the stock in my view so I'm taking profits here.  I bought the May 20  60/65 put spread at $2.00 even and sold it this morning for $2.77 for a nice 39% gain in just a few days.

HERE IS THE ORIGINAL POST WITH THE TRADE SETUP:

Elliott Wave Options Signals - Short Waste Connections Inc. (WCN)

More and more stocks are hitting bearish signals and exhibiting overbought conditions which lend to my theory that my bullish wave count of the stock market is in jeopardy.  Here I see WCN hitting a wave c of (ii) down towards the $62.50 level.  This option trade is low risk, but as a result, returns would be small as well.  Here is the trade I made:

Buy to Open WCN May 20  60/65 put

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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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