High Probability Trade Ideas
Sharing some setups which I think are interesting. Keep in mind though - In this news driven market things can change pretty quickly. Trump just raised tariffs on Canada again although the focus next week will be on the Fed rate cut decision on Wednesday.
We are continuing to see the market move upwards with 56% of stock above the 20D. Still quite a bit away from end of August levels.
Another interesting chart to watch is stocks above 5D. If you look closely, generally we see dips when this goes past 70% and we are at 57% now.
Setups:
Massive number of call buys on Friday and it broke out of the range. If you look at the chart below it found support on the 20D and took out that range.
I bought some shares on Friday which I plan on trailing with the 10 or 20D SMA. Two ways to play this - look to see if there is an entry around 16.5 on Monday if it still looks strong. Otherwise a risk reversal would be ideal.
Risk Reversal involves sell one put and using the credit received to buy calls. Sell the Dec 15P and buy the Dec 19C. This should cost $19 dollars to put it on. If the trade doesn’t work out you would take an assignment at 15 dollars which is still lower than current price. A more conservative approach would be sell 2 Jan26 14P and buy 1 19C. If the trade doesn’t work out you would take an assignment at 14, which is slightly above where the 100D MA is and slightly above the average analyst price target of $13.5 dollars which is not a bad place to get long this stock.UNIT 0.00%↑
Chart looks good on this. It made a really big move in July, broke down found support on the 200D and is making a series of higher lows. It actually broke out on Thursday but I think it is still good for an entry.
Unusual call buying as well.
EOSE 0.00%↑ Eose looks good here with significant call buys and put sales. This will probably be a descent long term hold as well.
