Option Strategies: DE& MELI
Hello everyone! Today i want to share some option strategies with you!
1.
Trade idea on $MercadoLibre(MELI)$
Sell-to-open the April 19 expiration 1580 strike put
Rationale: MELI reported earnings last month and looks to have bottomed on the daily chart
Very strong volume support at the 1575 level
Volume point-of-control at the 1595 level
MACD looks like its curling back up
Two green candles to end the week last week with the last candle being a hammer candlestick (which signals a potential capitulation by sellers to form a bottom and indicates a potential reversal in price direction)
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2.
Thinking of running this optionselling $John Deere(DE)$ put credit spread trade again since it worked beautifully this past week and the set-up is still there.
Sell-to-open the Mar 8 expiration 360/355 put credit spread
Moving up the strikes from 355/350 since DE price action is moving up as well [MACD potentially flipping red to green this week on daily chart and reversal from bottom already in play]. This will allow us to capture a bit more premium.
Staying with the 355/350 put strikes is perfectly fine too and gives more downside cushion vs the 360/355 strikes. Obviously, the trade-off is less premium.
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