Yesterday during the drop close to 5200 I said I was buying short term calls OTM because I thought we'd see some sort of bull trap.
Had through it would be a lot bigger but the main thing I was looking to see was a clean 2 leg bull trap.
We have this now and are in the potential reversal zone of a bearish butterfly.
Implied target for a successful butterfly would be capitulation to 4150.
Had through it would be a lot bigger but the main thing I was looking to see was a clean 2 leg bull trap.
We have this now and are in the potential reversal zone of a bearish butterfly.
Implied target for a successful butterfly would be capitulation to 4150.
Comment:
Timely. Stops to even on entries from the high.
Trade closed: target reached:
Touch early on the flip from calls to puts but that completes the first downswing targeted.
Hopefully a bit of a rally now to set up a second short.
Hopefully a bit of a rally now to set up a second short.