A Crypto Currency play on Wall Street

With how hot cryptocurrency has been and blockchain in general why not look at a trade that could combine the best of both worlds.

Looking at a possible options combination on $AMD as part of the crypto currency play tied in with their processing chip partnership expected profits. If you would like get more information on trading ideas in crypto to Stocks to options feel free to join the discussion http://www.ascendtrading.net?aff=osirustwits

Here are the trade ideas

AMD LONG CALL has an average move 12% during earnings with current price at time of report $11.79 means buying the $11 strike could net you a 25% move profit.

An AMD BULL CALL SPREAD buying the $11 for $1.73 and selling either the $13 strike for $0.83 or $14 strike for $0.55 gets you into this trade for $0.90 and $1.18 respectfully. Keeping in mind that you are currently $0.79 in the money that means only buying $0.11 and $0.39 of extrinsic value to have a profit potential of a $2 or $3 spread. I like those odds on the reduced capital as you have long the 66 Delta.

AMD COVERED CALL Buying shares of AMD at $11.79 and selling the $12.00 call for $1.22 would result in a call-away-return of 11.9% if the stock trades above the strike following earnings. This also would provides downside protection to $10.58 and positive Theta

SHORT STRANGLE expecting the move to not go past the 12% avg means that we could throw an other trade over top and short strangle selling the $14 Call strike and the $10 Put Strike for a total of  $1.08 meaning break even would be $15.08 tot he upside and $8.92 to the downside.

LIZARD also could be thrown on top of the bull call spread by selling short the $13 call for $0.83 and sell the $11 put for $0.86 then to reduce the infinite upside risk buying the $14 strike call for $0.57 put the LIZARD in play for a credit of $1.12.

Why I like the combo of the BULL CALL SPREAD and the LIZARD is:

If AMD goes down after EARNINGS the break even on the BCS is $11.90 so you would loose under that and the break even on the  LIZARD would be $9.88 so $10.89 would roughly wash both trades as no gain or loss..

If AMD goes up as I expect since I have capped the upside risk by taking in more than the spread $1.12 vs $1 (-$13C +$14C)  I would still make $0.12 profit on the LIZARD while I would make full spread on the BCS  ~$1.10 profit totalling  $1.22 but anything less than full spread would keep the full $1.12 from the LIZARD 

Best Scenario AMD is pegged at $12.99 at option expiry from the BCS I would get full value of the $11 call being $1.99 in the money no value on the short call and thus also keep full value on the LIZARD for a profit of $3.11 you can see why I like the combo of the BCS + LIZARD in this case.

Option Chain from https://marketchameleon.com/Overview/AMD/OptionChain/
This is strictly for infotainment any trade I post is how I am trading my money if you follow you do so at your own risk. Everything has risk even crossing the street so look both ways, do your due diligence.

Today we closed the $DDD options play took the profit off the table this let us focus on the play of the day the $KBSF halt short.


$KBSF a former runner approaching resistance levels and moving on what I consider not the strongest of volume. We had wanted a short at the break of $7 for top tick but she was not cooperating so we hit it on the VWAP (Volume Weighted Average Pricing) break.

This was not the strongest of the shorts as we shorting into a weakness thus the trade was not a repeat affair just a scalp.

As always the chatroom got the alert before we took the trade. If you would like to get these alerts you may also join the community ( HERE ) where we trade everything from Stocks, Options, Futures, CryptoCurrency and FOREX. We #TradeSocially

If you have any question feel free to join the discussion http://www.ascendtrading.net?aff=osirustwits

Earnings Report play for the week $DDD

This was a spread option trade.

In order to create a spread you are buying one option strike and selling the other. The difference between them is the spread. It reduces risk as it reduces the amount of capital in the trade.

The last few months I have been immersed in the crytpo-verse with mining, trading, running masternodes and buying ICOs. I will update those going forward through this site and youtube as we go into the 3rd month of 2018. Took a short break from the intangible world to get short on stock as a help for a member with their entry and exits on shorts. $ZSAN was the target. Here is the trade Osirustwits™ AT (@Osirustwits) tweeted at 7:13 AM - 27 Feb 2018 :

Took a break from #Crypto with the @Ascend_Trading #TheDarkArmy to help a member who was having issues with short entries & exits. Did a live trade walk through on $ZSAN if you want to learn to trade #Charts on #Crypto #Stocks literally anything join in https://t.co/Zerbd0nh7G https://t.co/55kgo9j1ZD (http://twitter.com/Osirustwits/status/968504481599012864?s=17)

A gift to my loyal readers and followers

Welcome all it has been New York minute since I posted last on this blog ever since going to the Ascend Trading chatroom found here http://www.ascendtrading.net?aff=osirustwits to bring a blast from the past and our fundamental short on Intercept Pharmaceuticals Inc $ICPT back to the spotlight as we close it out down $21.52 at $91 from a high of $112.52 or 19%

If you remember the value of the stock was pegged at $91.44 to $96.01 and when we got the run up on "buyout" rumours I had to comment and we begun stalking this great short.

So as a reward to all my loyal 5500+ followers on twitter @osirustwits and Stocktwits @osirustwits offering a free trial of the room where we have been not so quietly shorting the market.

Come join me and #TheDarkArmy on the ruby trial  http://www.ascendtrading.net?aff=osirustwits 

Like share and message me your thoughts on my twitter @osirustwits and about the trial   http://www.ascendtrading.net?aff=osirustwits  found here to Ascend trading

What is a short squeeze?

Been a while since I posted and many have asked about what is a short squeeze so I decided to do a blog entry to make it easier to explain how these work.

What is a short squeeze?

A short squeeze occurs when a stock that is shorted has its price start to rise quickly, this make shorts close their position or face larger loses.  This is because traders who short also known as shorters only profit if the stock price drops.

Now a shorter's losses are the short squeezer's gains, because the short squeezer is able to force the price to rise, buying into the stock and selling as it peaks higher and higher which drives the cover price up. Straightforward and simple but why doesn't it always work?

A short squeeze is not without risk it requires all buyers to sell on the ask or higher this will drive the price up as shorts clamber to cover.

Why this fails is because shorts will try to dive the bid with sells to try to scare longs into selling. If longs bail early by dumping the bid it craters the stock and shorts get out of a trap. Shorts can only borrow so many shares of a company that is the short interest percent once there are no more borrows they can no longer sell the bid. These crowded shorts happen often in low float stocks with an already higher than normal short float.

Supply and demand shortage is what fuels this.

What to look for as a short squeeze candidate?

Short interest sometimes the higher the better. It is the number of available shares that have been borrowed and sold short. I look for over 10%

Days to cover this is a key factor because if the volume is low this will raise the price parabolic so the higher the number of days the better.

Stocks that have a known history of spikes these are usually stocks shorts have been squeezed on before.

Recent news or a promotion. News could be anything from a company press release, a SEC filing within the last week to 2 max or even another company in the sector. A current promotion of the company whether paid or uncompensated. While news has a stronger weight a promotion can also move the stock parabolic.

Price point of the short. This was exemplified when an entire chat went short Resolute Energy Corporation ($REN) at $16. That was the intraday support thus many closed their short and flipped long to create a squeeze on that group which topped out at $23 over several days and now the stock is over $32 time of posting 100% price increase.

That was a successful squeeze.

REN Pump Confirmed via Northland Securities

Not going to waste your time or mine going into a big I knew this told you so just a matter of time speech. Just going to be short and simple REN Resolute Energy Corporation ticker $REN has been confirmed as a pump by at least Northland Securities who issued a price target of $35 on the high only thing bulls see and $12 on the low.

https://twitter.com/MintCapital3/status/773191776270245890

 Good luck trading this long or short get protection