TopOptionAlert
Oct 24, 12:05 AM
$NCLH OCT30 15.5C · actionable here
Zone:
$14.99 to
$15.21
Invalidation: close under
$14.50
Objectives:
$16.00, then
$17.00
The math: up 6.0% to the first objective and 12.6% to the second, against 4.0% risk on the invalidation, better than 3 to 1 to the second.
Earnings land Thursday before the bell, and the week before a report is when the people who already know what they own start showing their hands. This is a swing setup built around that. The stock shook off a JPMorgan downgrade to an
$11 target today and still closed above
$15, which tells you the sellers already took their shot and the floor held. If it wants to run into the number, the path goes through
$16 first, and those 16 calls already carry thousands of contracts of open interest, which is just other people paying to sit in the same seats.
P.S. Thursday's report is the whole trade. If
$15 holds into it, the run to
$16 gets started without anyone's permission.
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