Trade Room Notes Wednesday January 21 st, 2015

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Christopher Craig
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Trade Room Notes Wednesday January 21 st, 2015 Legal Disclaimer None of The Super Trader or any of its officers, directors, employees, other personnel, representatives, agents or independent

1 Trade Room Notes Wednesday January 21 st, 2015 Legal Disclaimer None of The Super Trader or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial advisor or a registered broker/dealer. None of The Super Trader or its personnel gives investment advice or makes investment recommendations. Nor are any of them in the business of effecting trades or directing clients trading accounts or giving trading advice tailored to any particular client s situation. Nothing contained in this presentation, or on The Super Trader website, or in any other of its written materials constitutes a solicitation, recommendation, promotion, endorsement or offer, to buy or sell any particular security, other investment product, transaction or investment.

2 Wednesday January 21 st, 2015 Tickers Observations -IBM The stock tends to trade within horizontal support and resistance levels. We observed that the stock has come into it s horizontal support level of around $ SINA We ve identified that this stock is breaking out above of a short term descending wedge. We ve also identified that there is a longer term descending trend that we would anticipate the stock moving up to the descending resistance. -NFLX The stock has gapped up on earnings as its catalyst. Currently the stock has over half-way filled the gap from back in Oct We also have observed that there is some consolidation around to $400 price level in the past. We expect the stock to continue bullish with a target of $430-$440 in the near term. -BABA We ve observed that when the stock broke support at the $100 price level it dropped down to its descending trend line and found support. We ve also observed that the stock is trading at a descending resistance trend line as of today. 2 Page

Wednesday January 21 st, 2015 Ticker: IBM Chart

4 Wednesday January 21 st, 2015 Ticker: IBM Possible Opportunity Ticker: IBM Price of stock at time of trade: $ Strategy: Bull Put Short Put: $ Long Put: $ Credit: $0.35 Risk: $1.65 ROR: 0.35/1.65 = 21.2% in 2 days -We will allow our options to expire worthless Bullish Opportunity -Limit our losses to no more than our expected reward (.35) of our expected reward. We identified through the risk profile on TOS that we would have around a.27 loss if the stock dropped down to the $ level. 4 Page

5 Wednesday January 21 st, 2015 Ticker: IBM Possible Opportunity Ticker: IBM Price of stock at time of trade: $ Strategy: Bull Put Short Put: $ Long Put: $ Credit: $0.60 Risk: $1.40 ROR: 0.60/1.40 = 42.8% in 9 days -We will allow our options to expire worthless Bullish Opportunity -Limit our losses to no more than ½ of our expected reward (.30) of our expected reward. We identified through the risk profile on TOS that we would have around a.20 loss if the stock dropped down to the $ level. 5 Page

Wednesday January 21 st, 2015 Ticker: SINA

8 Wednesday January 21 st, 2015 Ticker: NFLX Possible Opportunity Ticker: NFLX Price of stock at time of trade: $ Strategy: Bull Put Short Put: $ Long Put: $ Credit: $1.35 Risk: $3.65 ROR: 1.65/3.65 = 36.9% in 9 days -We will allow our options to expire worthless Bullish Opportunity -Limit our losses to no more than We identified through the risk profile on TOS that we would have around a.90 loss if the stock dropped down to the $ level. 8 Page

10 Wednesday January 21 st, 2015 Ticker: BABA Possible Opportunity Ticker: BABA Price of stock at time of trade: $ Strategy: Bear Call Short Call: $ Long Call: $ Credit: $0.30 Risk: $1.70 ROR: 0.30/1.70 = 17.60% in 2 days -We will allow our options to expire worthless Bearish Opportunity -Limit our losses to about ½ (.15) of our expected reward. We identified through the risk profile on TOS that we would have around a.15 loss if the stock broke the descending resistance trend line to the upside and went to the $ level. 10 Page

11 Wednesday January 21 st, 2015 Trade Room Favorites Bullish Opportunity Ticker: IBM Price of stock at time of trade: $ Strategy: Bull Put Short Put: $ Long Put: $ Credit: $0.60 Risk: $1.40 ROR: 0.60/1.40 = 42.8% in 9 days -We will allow our options to expire worthless -Limit our losses to no more than ½ of our expected reward (.30) of our expected reward. We identified through the risk profile on TOS that we would have around a.20 loss if the stock dropped down to the $ level. Bullish Opportunity Ticker: NFLX Price of stock at time of trade: $ Strategy: Bull Put Short Put: $ Long Put: $ Credit: $1.35 Risk: $3.65 ROR: 1.65/3.65 = 36.9% in 9 days -We will allow our options to expire worthless -Limit our losses to no more than We identified through the risk profile on TOS that we would have around a.90 loss if the stock dropped down to the $ level. Bearish Opportunity Ticker: BABA Price of stock at time of trade: $ Strategy: Bear Call Short Call: $ Long Call: $ Credit: $0.30 Risk: $1.70 ROR: 0.30/1.70 = 17.60% in 2 days -We will allow our options to expire worthless -Limit our losses to about ½ (.15) of our expected reward. We identified through the risk profile on TOS that we would have around a.15 loss if the stock broke the descending resistance trend line to the upside and went to the $ level. 11 Page

12 Trade Room Notes Wednesday January 21 st, 2015 Legal Disclaimer None of The Super Trader or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial advisor or a registered broker/dealer. None of The Super Trader or its personnel gives investment advice or makes investment recommendations. Nor are any of them in the business of effecting trades or directing clients trading accounts or giving trading advice tailored to any particular client s situation. Nothing contained in this presentation, or on The Super Trader website, or in any other of its written materials constitutes a solicitation, recommendation, promotion, endorsement or offer, to buy or sell any particular security, other investment product, transaction or investment.

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