By: Tom Gentile
on May 11th, 2022
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.
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