Good Opportunities!

With the market down the last few days I see some really nice opportunities. I will not be getting into any of them because I’m pretty much fully invested. If I wanted more trades I would make these trades.

NIO

The stock is down and there’s a few good opportunities. They involve Selling Calls or selling Puts. As I write the stock is at $49. If the stock moves, the trades I’m listing can be adjusted. You could do as many contracts as you can afford to lose.

Reasons: Relative Strength Index (RSI) is in oversold territory.

Stock is below the low band of the Bollinger Bands.

Covered Calls

Buy stock at $49.00

Sell to Open NIO 3/5/21 $50.00 C @ $4.10

Sell to Open NIO 3/5/21 $51.00 C @ $3.50

Puts

Sell to Open NIO 2/26/21 $45.00 P @ 65¢

Sell to Open NIO 2/26/21 $46.00 P @ 70¢

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MOMO

The stock has been moving down and yesterday there was a reversal candle on the candlestick chart. There is also an opportunity for a Covered Call. I’m not crazy about the Puts

Reasons: The stock is about a 45 RSI.

The stock is not quite at the lower band of the Bollinger Bands but it is in a reversal pattern.

Covered Call

Buy stock @ $16.50

Sell to Open MOMO 3/5/21 $17.00 C @ 55¢

Sell to Open MOMO 3/5/21 $17.50 C @ 45¢

All of these opportunities have a good return.

These are the types of trades I look for.

Successful trading,

Steve

The Options Coach