$450 huge price area on SPY.
QQQs with two narrow range candles in a row.
So back to our more normal markets showing us a mixed bag of results.
Todays trade is on COIN. If Coin is between $250 and $260. I will be taking on two different trades . First trade is a butterfly where i will buy a $240 call STO (2) $260 calls and BTO $280 call . I should get filled for approx. $5.50 debit . Charts look bullish on the daily and i am anticipating another move up . I am risking $5.50 which is my max loss and my max profit potential is $20.00 per share. I will also be doing a credit spread I will also put on a $225 /$220 put spread for around .50 cent credit . Higher chance of winning on this trade statistically but much smaller profit potential. Max loss on this trade would be the width of the strikes less the premium received Both trades are bullish in nature but allow those looking at this trade the opportunity to paper trade it and see how it turns out.
With more relaxations from the Covid restrictions and opening up of the economy, the companies like $ESS (Essex Property Trust LTP $317.95) get new energy. The company raised their forecasts for the next quarter based on the renewed interests from the property investors and buyers. The stock is currently trading in the oversold region in Stochastic and MACD and looking to break out in the upside anytime soon. There is a good support available at 50EMA for that matter and it currently rests there. On the upside it can go up to previous high of $336.75 in the next few weeks if not days.
On the downside, the broader market is still cautious and in case the stock does not break through the 50 EMA, then it can go below the 50EMA to the level of $300 which would act as a nice support in the short and medium term.