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Tuesday, November 14, 2017

Bought back time decayed short call to close hedge on XLV Call


Since the entry of XLV June15$79 Call 6 weeks ago, XLV reached its top uptrending line in about 3 weeks, then quickly pulled back. The drop passed a few support levels, based on which no short calls were entered to hedge the naked long position.

The short call was entered after XLV fell below its 50 day moving average on Oct 30. Since then, it moved about 2+ weeks and the short call Nov 24 $83 reached about $0.04 as a result of time dacay. So, it was bought back as XLV sits on the major support around $80.82. No new calls were sold due to the support line and the rising MACD historgram and STO.


Created with ProphetCharts®

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