DE Weekly Calls
Today, I’ve added XLF and CVX calls. Both trades are relatively the same from a technical standpoint and each trade has about 40% risk. I will play them to my previously mentioned targets.
Given the holiday shortened and relatively bullish nature of this trading week, I bought 10 NOV4 90 calls on DE at .25. These are weekly calls and will expire Friday. The odds of this trade paying of is very slim but the reward is very strong if the stock reaction to DE earnings is similar to last year. With light trading volumes and earnings news, the magnitude of the move in DE is likely to be amplified. The weekly calls give a small shot for a substantial gain for only a $250 outlay. DE needs to push above 90 for the calls to pay off.