I’m going with ROKU after it’s been whack-a-moled down to a support zone within the distribution chop on the daily. There are three layers of oversold support, and we’re in the middle. We’re also above the support and mean on the VScore which makes for a good confirmation of my bullish bias. I want to respect the trend that was and focus on oversold buys and use a vertical to offset the cost of the pricey ROKU calls for Nov 15.
This week I am looking at a longer term bullish position on PHM. The Weekly Chart is setting up nicely for a bullish pattern with a Weekly Squeeze and two Compound Breakout Signals to the upside. In the video I discuss long call ideas, as well as a shorter term Call Vertical Debit Spread in case you are concerned about PHM stalling out at prior highs.
AMD has a difficult time going above $32. We repeatedly reject this level, and going into Friday, I like the bearish momentum continuation and the continued weakness under the 50sma and now the 34ema on the daily. I wanted to see how it would open after the holiday weekend. It looks like the weakness may continue, so I implement a 32/30 bearish vertical (put debit spread) into Friday.
I think MCD is a Honey Badger and does not care what the market is doing — I will do a simple “let me sleep at night” covered write on it, thinking we go higher into earnings. This should yield about 6% return with low risk, which is good in this market.
For today’s trade of the week, I’m looking at a short in the Russell. Why? Even though the market gapped higher, we are running directly into resistance. IWM has been the weakest link of the indexes, so I’m going to start there. I’m scaling in with one contract and I’ll add more if we rally further into the 200 SMA on the daily chart.
For this trade, I’m taking advantage of the index put premium and going way out of the money on a put debit spread. Statistics-wise, this is a low probability trade. But the risk to reward is great, so if it works, I will be happy, and if it doesn’t, I won’t run out of the office screaming that life isn’t fair.
It’s the end of the world as we know it: In this Trade of the Week I am looking to short IWM in to September by doing the 155/145 put debit spread. Let’s dive in
Bullish Home Depot on the trend correction. This is a long call or call vertical on HD with 4 weeks to earnings, with the uptrend in HD and the Dow intact. Straight up pullback buy.
Bullish Home Depot on the trend correction. This is a long call or call vertical on HD with 4 weeks to earnings, with the uptrend in HD and the Dow intact. Straight up pullback buy.
