TopOptionAlert
Oct 24, 11:31 AM
$QBTS NOV20 12C · still actionable
Zone:
$11.58 to
$11.74
Invalidation: close under
$11.26
Objectives:
$12.10, then
$12.82
The math: up 3.8% to the first objective and 10.0% to the second, against 3.4% risk on the invalidation, about 2.9 to 1 to the second.
Dear friend, picture a shop that fell from near 17 dollars in early October to 11 dollars and 26 cents on Friday, then closed a little higher at 11 dollars and 66 cents. This is a swing, and the idea is simple. You are betting Friday was the moment sellers ran out of room, because price closed back above the 11 dollar and 35 cent floor from October 15, with room back toward the October 21 close first and then toward the October 15 close, while a close under that Friday low says the slide is still going and you step aside. Earnings arrive November 5, so this window runs into that report and out to November 20.
P.S. Watch 11 dollars and 69 cents, the Friday high, because a move over it shows buyers taking back ground.
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