Another great trade made in Schlumberger (SLB), a basic materials company specific to oil and gas equipment and services. This trade is a nice example of using increasing volume to extend a possible target ‐ in this case, to the downside.
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 favorable volume. The trader decided to use a diagonal put spread, with the ability to adjust and take advantage of further gains.
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 favorable volume. The trader decided to use a diagonal put spread, with the ability to adjust and take advantage of further gains.
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.
