New Bull Put Credit Spread Idea on DOCU 10-26-18

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Of great importance is: Money Management Considerations When Selling Option Credit Spreads for Income.

NEW TRADE IDEA:   10/26:  DOCU – Consider shorting HALF-POSITION of Nov (11/16) $35/30 bull put credit spread (21 DTE) for current mid-point of $.50/share, and other half at mid-point on Monday over today’s high for limit of $.45/share.   W-Bottom retest on Major Support daily with bullish engulfing bar on the daily, oversold and on Major Support IPO levels on the weekly, selling far OTM (short put is $6.00 OTM and below IPO price) put spread as an income trade with high volatility (11% ROC if expires worthless).  Stop Loss $37.88.