Red Pear Luke said:
mazag08 said:
I'm taking a bet here. AMD to $107.50 at the high end, $102 at the low end.
Buying Dec 3 $110 puts.
You're thinking AMD is going to tank post earnings? What's the logic there.
Brace yourself..
In August it completed a 3rd wave within a larger 3rd wave, perfectly off of the 161% extension of waves 1 (July 6) and 2 (July 16). 161% is the most common extension a larger 3rd wave hits. But for a sub 3rd wave within a larger 5-wave structure to extend that high (usually lands at 123%), it means the larger 3rd wave likely won't extend far past that same point since market sentiment already got us our overall target. It then proceeded to enter a 4th wave correction down to the 61% extension on September 20 which is the usual landing spot for wave 4 of 3. From there, it just completed wave 5 of 3 (and thus the larger wave 3) hitting 176% extension almost perfectly. The wave 4 landing spot will be between the 76% and 100% extensions which are $101.90 and $107.40.
After that, I fully expect it to have an impressive impulse rally between the 200% and 261% extensions at $130 and $145 respectively.
You don't have to bet on the down side. Timing those can be tricky. But be ready to deploy if that downside hits knowing your upside targets.
And if I'm wrong, then this thing is heading to those upside targets immediately and it will end that what I'm calling the sub wave 3 is actually the larger wave 3 hitting it's predictable fib target (161%). But I like to see the sub waves take shape hence why I'm bullish on this theory.