Selling vertical credit put spreads is a bullish position and as you can see from the chart above, Baidu is showing a bullish engulfing pattern as the price is bouncing off of a key role reversal support level. The other bullish confirmation is the fact that the volume has been dropping as the stock has been moving lower. This is a sign that the sellers are losing their interest in selling at the lower prices.
Options Oracle: 05/21/15
Posted on May 21, 2015 by AJ Monte in Options Oracles
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