Posted in Strategy
By: Tom Gentile on May 11th, 2022 • 2 mins read
Bulls and Bears are playing some serious tug of war intra-day, which is either really fun or really aggravating for you day traders.
Money Calendar traders really aren’t day traders, but if a profit target gets hit in a day we are likely to grab it.
Here is a Money Calendar bullish setup that we don’t anticipate taking one day profits on, but rather it is a 21-day pattern as its past 10-year history shows.
Bullish Opportunity #1: American International Group, Inc. (NYSE: AIG)
Sector: Financial and Industry: Insurance – Diversified.
AIG offers insurance products for commercial, institutional, and individual customers in North America and internationally.
Action to Take #1: Call Debit Spread
Entry Date: June 11, 2022
Buy-to-Open: American International Group, Inc. (NYSE: AIG) AIG June 10. 2022, $58 Call (AIG2200610C00058000) and Sell-to-Open: American International Group, Inc. (NYSE: AIG) AIG June 10. 2022, $63 Call (AIG2200610C00063000) Creating a Vertical Call / Debit Spread for a limit of $2.40
Exit Strategy / Profit Taking Option
SELL-to-Close: Close the entire position for a 100% Return on Investment (ROI)
Exit Date: June 08, 2022
We would love to show a Long Call only, but with elevated IV it is risky to show that knowing that a drop in IV alone, regardless of what the stock might do could cause a loss so a Call Debit Spread it is.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.