XBI Bullish Opening Trade Signal – March 11, 2022

View XBI Trade

Strategy Details

Strategy: Call Debit Spread

Strategy Direction: Bullish

Details: Buy to open April 22, 2022 $88.5/$95 Call Vertical @ $2.65 Debit

Counter Trend Signal: This is a bullish strategy on a stock or ETF that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 3/10

OptionsPlay Score: 89

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade.

Investment Rationale

Though falling sharply since November, the ETF is about 50% of its all-time high; has been basing for over a month; and earlier this week posted a daily Combo -13 signal from its most oversold level to its 200-DMA we’ve seen in a couple of years.

Thus, we will look to buy an April 22nd $88.5/$95 call vertical for $2.65 debit – its closing mid-price spread from yesterday.