TNT Social Posts
Price Breaks Provide Option Profits in $BIDU
In our TNT Options Trading Service on March 11th, we talked about Baidu (BIDU). We suggested simple targets for $BIDU if it should break and make a run either above or below its 50-day SMA, with the iShares China 25 Index (FXI) moving in the same general direction. After a couple of months of strength […]
In our TNT Options Trading Service on March 11th, we talked about Baidu (BIDU).
We suggested simple targets for $BIDU if it should break and make a run either above or below its 50-day SMA, with the iShares China 25 Index (FXI) moving in the same general direction. After a couple of months of strength in the Chinese and tech stocks, they had both pulled back and then begun to bounce, putting in a higher low, over the week leading into March 11th. The question was, would they be ready for another rally?
On March 12th, the stock opened well above its 50-day SMA but sellers came in on the gap and quickly brought the stock, with momentum, back down to the moving average, aiding a quick put trade before support was found and the shares of BIDU recovered, right back to close above just over the 50-day SMA, The following day offered a chance to enter a call position with our boxes checked, and the shares stopped right at the $170.50 flat-line, which signaled the opportunity to roll. On Thursday shares were set to close with a bullish hammer above the 50-day SMA, providing strength to the bull thesis and Friday again brought with it both a gap higher and a close on our $170.50 flat-line. With the strength, some traders held their rolled positions as March 18th saw the stock scream higher to the next flat-line and 100-day SMA.
Subscribers took advantage of these opportunities and were able to profit anywhere from 35% to 89% in both directions using discipline and a strategy involving their flat-lines.