Here is a great trade made in CSX Corp. (CSX), a railroad company serving both the U.S. and Canada. The trade is a nice example of choosing multiple target areas – a great strategy included in Maverick's curriculum.
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 continued weakness through a support level. He decided to use a diagonal ratio put spread to take advantage of two possible target areas.
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 continued weakness through a support level. He decided to use a diagonal ratio put spread to take advantage of two possible target areas.
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.
