MM29 - SATS Comparison

I want to talk about SATS again today. This is the ARB play that InvestAnswers came up with, and it is brilliant. Win or lose, this is a brilliant setup. I do want to add to my position. I have been patiently waiting, looking for us to come back down and test this $105 level.

I am not sure we are going to get there, and here is why. We have very defined resistance up at $135 to $137. Clear support right around $102 to $105. We are smack dab in the middle of the range right now. Mean reversion is in the middle of the range. And I would be splitting hairs to say, well, maybe I will get that last $15 of savings, because when you price it in the form of a modified synthetic long, which is how I am implementing the trade, the difference is not enough to justify waiting.

I am going to show you both the MSL and the synthetic long side by side so you can keep learning the difference between the two.

First, what am I looking at? Fibonacci retracement. Pivot low. Retesting high. We have a perfect 50% retracement. That was my deciding factor. Mean reversion is neutral. We are right at the 50% mark, smack dab mid range. The SpaceX IPO is coming up. I am going to take this trade.

Will I add more at $105? Maybe a little. But I originally entered at $105 so I do not feel a compelling need to buy more there because I already bought it there. So many of you have come forward and said you do not have a position yet, so I am showing you how I would probably stagger my trade in.  Not financial Advice!