Price was shooting above the CL, and fell back below, doing a Test/Retest.
This indication is my potential to short Baba, by selling a CreditSpread and Buying DebitSpread, financed mostly by the C.S. This gives me a good BPR (BuyingPowerReduction).
I have only 46 days to let it play out.
This means, I have to keep my eyes on the Theta component of the D.S. - This is the reason why I sold a C.S. too, so my overall Theta is not melting too fast away and it fits to my chart analysis perfectly.
Update - 17.01.18
Yesterday BABA traded into the DebitSpread and the positions has a current overall profit of 30.60%.
It's already a nice profit in this short time since the trade was setup.
I watch how markets open today and then I decide, wether I close the position or not.
2018-01-20 - Update
After the last post I decided to hold the position.
But this situation is not very comfortable, since I expected BABA to drop a little more again.
Giving it a couple days more. But if price starts to climb again, I close the positions, but definitely bevor the earnings.
2018-01-23 - Update
Closed BABA at the open with a smaller profit p.c. then expected.
They ripped me off on the spread, but hey, still a profit...
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