TBO - NBIS Update 7-28

7-28

NBIS is sliding and is through our DEM. Some traders may already be out of this one. If you are still in consider holding off a little while longer. Current premium is roughly ~1.30. Alternative DEM level of 159.70!

 

BULLISH– Selling PUT Vertical

NBIS $208
Consider selling the NBIS 31JUL 140-130 PUT spread for roughly $1.10(min $0.90) with stock ABOVE $206 (current $208)

Consider NBIS 31JUL 140-130 PS

Risk: $10 vertical spread less premium collected of spread of $1.10 = $8.9 of risk

Max reward is $1.10

ATR: $21.16

Straddle: $47.55

Morph levels: Stock BELOW $164.31(7/17 Low) consider making an adjustment with market that is moving LOWER!

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7-24

AVGO IC into ~1.24. Consider buying it back.

GS call spread into ~0.46.

Original ideas below.

 

Time Bandit Idea for Expiration of 31JUL, 2026

In AVGO consider selling the 31JUL, 2026 Expiration (31JUL26) Expiration 350-430 Iron Condor for about $2.10 mid price with stock around $385

Consider AVGO sell 24Jul 350-430 IC

AVGO

Buy 340 Put
Sell 350 Put
Sell 430 Call
Buy 440 Call

Minimum $1.90 with mid around $2.10

Technicals: Straddle is $29.35(IV Move on TOS is $30.22 ) and strikes are $35 to the downside and $45 to the upside. The Average True Range is $16.7

Risk: The total risk of the trade is defined by the distance between your long and short strike of your spread ($10) minus the amount of money that you sold the Iron Condor for.  For this spread we are getting around $2.10 so our risk is $7.90

Reward: Our reward will be maxed out if the stock stays between our two short strikes and will be equal to the amount you sold the condor for.  Maximum reward would be $2.10

Adjustments: Our upside morph will be executed only when the stock has broken up above our upside resistance line and commences a technical breakout. Our downside morph will be executed only when the stock has broken down below our downside support line and commences a technical breakdown.

***Trade Management: For those wanting to reduce their risk sooner, these levels can be used as breakouts for an early morph:

Upside early morph levels that can be considered: $414.64(6/22 H)  with the stock moving higher

Downside early morph levels that can be considered : $356.43(7/2 Low) with the stock moving lower

 

BEARISH– Selling CALL Vertical

GS $1081

Consider selling the GS 31JUL 1150-1160 CALL spread for roughly $1.20(min $0.90) with stock BELOW $1082 (current $1080.85)

Consider GS 31JUL 1150-1160 CS

Risk: $10 vertical spread less premium collected of spread of $1.20 = $8.80 of risk

Max reward is $1.20

ATR: $36.68

Straddle: $53.4

Morph levels: Stock ABOVE $1125 (6/18 High) consider making an adjustment with market that is moving HIGHER!