Here is a great trade made in Aetna (AET), a healthcare benefits company. This trade is a good example of implementing a gap strategy, along with using it as a possible target.
There are many different trading strategies available to take advantage of this type of setup in the options world. In this case, our trader wanted to take advantage of a recent gap. The trader decided to use a vertical spread, using the gaps range to select strike prices for the combo.
Typically, for the strategy chosen, the risk is the premium paid and our traders aim for a 50%+ return. At Maverick Trading, we pride ourselves on our community of traders. Every week in our live Trading Room, our traders share their favorite new trade setups (like the one above from last week) with all of their fellow Maverick traders.
NOTE: Chart(s) courtesy of FINVIZ.com.
There are many different trading strategies available to take advantage of this type of setup in the options world. In this case, our trader wanted to take advantage of a recent gap. The trader decided to use a vertical spread, using the gaps range to select strike prices for the combo.
Typically, for the strategy chosen, the risk is the premium paid and our traders aim for a 50%+ return. At Maverick Trading, we pride ourselves on our community of traders. Every week in our live Trading Room, our traders share their favorite new trade setups (like the one above from last week) with all of their fellow Maverick traders.
NOTE: Chart(s) courtesy of FINVIZ.com.
