Ichimoku Stock Option MTW: Trade Entry Setup 4-14-10

  • Home
  • /
  • Blog
  • /
  • Ichimoku Stock Option MTW: Trade Entry Setup 4-14-10

MTW stock broke out the other day with volume.   It has been consolidating for along time.  This is a chance for a new trend to begin.
Here is the Ichimoku chart.  We are looking for a SLIGHT pullback before entering.

You can enter buy purchasing stock or looking at options.  Your stop will be the Kijun Sen minus a buffer.   Below is the risk graph for ONE possible option choice.   On this option choice, we are looking for a pullback, where the option price will go from a mark of 0.80/contract to 0.50/contract for the Jun 16 call options.  It may not pullback enough to change the options so you have to watch it.  The other option is to look at the June 17 calls which right now are being priced at 0.45/contract mark.    The delta is 0.25 so if the stock moves up $1 we are looking at 50%+ which is good.  Also, volatility should be increasing since earnings is coming up

For EDUCATIONAL USE. Commodity Futures Trading Comission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose