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| Delta Interval Research Note |
CYCLES RESEARCH |
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1 - Dell Inc. (DELL) Cycles Report
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- last stock close: $23.63,
- cycle length duration: 86 days,
- cycle amount of dollar change: -$8.37,
- often a cycle ends with a high daily trading volume,
- pointing to the cycle end: look for above avg. daily trading range.
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| 2 - Price Behavior Graph |
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3 - Options Trade
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We have observed a substantial move downwards over the past month and a half. The technical indicators point to stock being much oversold. The value decrease of $8.37 dollars represents a 26% fall of DELL stock price since the negative cycle started on Feb 15.
We buy 3 contracts of Jun-06 DELL 25 options straddle. This means we are indifferent to the direction of the stocks move, even though there is
a high chance of a correction downward. We monitor our directional risk by delta and our time
exposure risk by theta. The market fluctuates and offers an opportunity to achieve a target of
monthly +5% to +10% return per trade. (learn more) |
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About Delta Interval
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