Allison’s Setup in SO 7/15/2019
I am looking at SO for an overall move higher into earnings. I want to be cautious of potential exhaustion and consolidation, so I walk through two different trade ideas to be mindful of this.
I am looking at SO for an overall move higher into earnings. I want to be cautious of potential exhaustion and consolidation, so I walk through two different trade ideas to be mindful of this.
Squeezing PINS — Pintrest has several nested Squeezes that should provide an opportunity this week.
This week, I continue to look at MTCH as it is in its fifth day of a bearish squeeze that has formed. I support the idea of it accelerating to the downside, if it can breach that 50sma right at about 67.85.
Netflix and Chill: For the Trade of the Week we look at Netflix, as it has cleared resistance and is in multiple squeezes. I like the 365/375 call spread for August with the idea of selling it before earnings in July.
Bearish in EA — This stock has been all over, and I’m not saying today is the high, but over the next 2 months I’ll be looking for the weekly Squeeze to fire short.
With Monday mornings gap higher, particularly after last week’s rally, it makes it difficult for me to want to get too long. This, combined with the sideways price action and upcoming options expiration, leads me to a neutral trade in NFLX. I’m selling premium at the $360 strike, for a neutral trade into next week’s expiration.
Long Mastercard and Visa. MA and V have been relative out-performers and in this environment, I want to be a stock picker focusing on stocks with grit. I am building a long position via July 19 calls at 160 in V and 245 or 250s in MA.
I think the sell-off in SPLK is overdone, and I want to try to catch a move higher while limiting risk if we don’t get a bounce. I will use a Call Debit Spread and limit risk by number of contracts.
Overall, I am seeing many warning signals across the markets, and that is the basis for the trade setup short in BABA: A play on risk on trade unwind.
Fishing for AMZN Flies — AMZN could have another dip lower, but I’m thinking we stay above $1775 this week, and this is one way to trade that.