Spot and Trade Institutional Money Moves

Algorithmic Trading with Human Interaction for:

Day Traders, Swing Traders, Long-Term Investors

Saturday, October 18, 2014

Stock Trading Opportunity on FFIV for October 20, 2014

Check out the chart and write up below to find a Bottom Reversal Opportunity on FFIV.

NeverLossTrading HF-Stock Trading Chart (only trade, when the price threshold is surpassed)

The NLT Alert Scanners gave us a signal for a bottom reversal on FFIV:

Entry Price Level and Outlook

We only want to consider a long opportunity when the spelled out price threshold > $114.51 is surpassed. By our algorithm based calculation the buy-stop entry is at $114.61. If the price of FFIV does not get there, we do not accept the trade.
Only when the price for FFIV will reach $114.61, we have our confirmation that other market participants support the institutional move our scanners found.
The Purple-Line identifies the price development of the past five years and indicates that we are entering a time period, where FFIV shows a strong price development.  
If the trade realizes, the expected time in the trade is about five days, maximum 8 days, watching out for the earnings announcement on 10/29/2014. If you want to hold the position over earnings, find a form of protection.

Target Price
The algorithm based target price is at: $118.84
Entry to Exit: $118.84 - $114.61 = $4.23 (return on target: 3.7%).

Stop or Trade Adjustment Level
In case the trade does not perform as expected, take action at: $110.79 (risk of 3.3%).

Alternative Way to Trade this FFIV Chart Setup:
Sell the September 2014, $105 Put for a premium of $2.40 (2.1% return in 34 days, 22.2% annual). The probability for the keeping the premium is calculated at 71%.

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Good trading,