Here is what I am looking at today. Las Vegas Sands Corp. (LVS) is starting a trend DOWN and has the potential for a great trade. I have also included an update on a previous trade example at the bottom of this message.
Let’s look at LVS as an example of how options work and the advantages they offer. In this case we are going to focus on True Strength Index (TSI), a powerful indicator that generates signals that help you spot great trades. You can get a great explanation of TSI here and learn more about how to use it effectively.
You can see on the chart above that the TSI Indicator is at the 0 line and heading DOWN, telling us it has BEARISH momentum. Whenever we are preparing to enter a trade, we look for confirmation that the move is solid and the likelihood of it continuing in the intended direction is high.
In this case, a move to $44.50 is the confirmation we are looking for. If that happens, we will look at a target of $40 and even LOWER.
Options are very effective trading tools as they offer leverage. As an example, if you bought one PUT option contract covering 100 shares of LVS’s stock with a June 21st expiration date for the 44 strike, the premium would be approximately $1.52 per share, or a total of $152 for the contract of 100 shares. If price FELL the expected $4.00 over the next few weeks, the premium would likely increase approximately $200 to $352. This is a gain of 132% profit. That would be a nice trade over a short period of time!
Being thankful is one of the strongest and most transforming states of being. It shifts your perspective from lack to abundance and allows you to focus on the good in your life, which in turn pulls more blessings into your reality.
I send you wishes for the very best,
Wendy
Last week we discussed buying RBLX Puts. On 4-27 the May 17th 36 Put was $2.32. You could have sold on 4-30 for $3.15 a 36% profit.
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