Bought a bull spread in SSTK.
music selection: “Hush” — Deep Purple
I sat out the market yesterday as news out of China was rattling the global markets. It could have been the start of a major correction. When markets settled this morning, I decided to make a stink bid on a SSTK bull call spread. With shares trading at 118.72, I bought 19 115/120 November spreads for 2.55 a share. I put 4,845 of capital at risk for 60 days. The trade enjoys 0.99% downside protection and is currently poised to earn (if prices do not change) 2,223 in profits, which is 45.9% or 279% annualized. Should the price rise to 120 at expiry or more, I will earn the full profit of 4,655, which is 96.1% or 584% annualized.
I picked this company on strong earnings but moreso on a relentless uptrend. The chart just looks good and I like the technical setup.
Devour your prey raptors!