Monday, June 22, 2015

Community Health Systems Options Trade

I use a combination of support, resistance, Fibonacci retracements, volatility, and credit received to generate myself income. I drew a Fib line from an extreme low to the extreme high. Then based on volatility, and credit received I sold a vertical call spread.


Trade: 58/60 Vertical Call, above previous high, and since it’s reaching previous highs on weak volume, it won’t be able to break resistance.

Required Capital: $1500
Return on Cash: $600
Contracts: 10
Duration: 8 Days
Total return:  600/1500 = 40%

Go for rich,

Ronald

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