My Options Trading Pick For Wednesday, March 27, 2024, Is Now Live.
$LDOS is in a bullish trend with momentum and a strong bullish pattern formation. I'm going to risk $405 per contract for a potential $595 profit, a 146.91% return.
Commentary: $LDOS Leidos is a provider of technology and engineering services to defense, intelligence, homeland security, and healthcare customers. LDOS had a great run from 2016 until February 2020, rising from $26 to $117. Excluding the pandemic, the stock had been trapped in a wide range between $76 and $114 from April 2020 until February 2024. The last low occurred in May 2023 at $76. LDOS took off from there, peaking at $100 on August 1.
The stock gradually pulled back to $90 over the next three months, testing the 200-day a few times in September and October. The shares then exploded on October 31, breaking a bearish channel on huge volume.
After peaking on December 4 at $111, the stock traced out a flag and broke sharply higher on February 13 with big volume, hitting an all-time high and peaking on March 6. Since then, LDOS is tracing out another flag
🎯 My target price is $142.12 by expiry and I need to be above $134.05 for the trade to be profitable.
Strategy: Call Vertical $LDOS
Trade Breakdown:
This is a bullish strategy with a limited risk of $405.00 and a limited potential reward of $595.00. This strategy will profit if the stock closes above $134.05 by May 17, 2024. There is a 38.14% probability this will happen.
Entering The Trade:
Bid: $3.25 Mid: $3.65 Ask: $4.05 Avg Premium: $4.05
Please note that these prices were taken during market hours. If they change dramatically by the time you read this, use your discretion. Stop Loss at 50% on this trade.
$LDOS Leidos Holdings Inc
Trade Checklist:
Stock Trend: The strategy you have chosen is bullish and LDOS's 1m trend is bullish.
Market Trend: The strategy you have chosen is bullish and currently the S&P 500's 1m trend is bullish.
Earnings Date: Be aware that there is an earnings call on Apr 30, 2024, which is prior to the expiration of your trade.
Spread & Liquidity: The bid/ask spread of this trade is very large. It is highly recommended that a limit order is placed near the MID price to minimize the impact of the spread on your strategy.
$LDOS Alternative Trade For Level I Accounts:
Trade Breakdown:
This is a bullish strategy with a limited risk of $530.00 and unlimited profit potential. This strategy will profit if the stock closes above $135.30 by May 17, 2024. There is a 33.99% probability this will happen.
Entering The Trade:
Bid: $4.80 Mid: $5.05 Ask: $5.30 Avg Premium: $5.30
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Love the options trading ideas you offer. I think you mentioned in each there’s an achievable percent ie. 36.7%. To get full take on the option.
What’s your thoughts on closing options spreads prior to expire? I realize everyone has their own thresholds of what they would take. Just looking for your advice. Thx!