Trade of the Week
Bull Put Spreads in Oversold Homebuilder with Short Puts in OI
Lennar (LEN) has started to bottom out with peers after a ugly slide the past few months and now looks to be building a floor between 100-110 and seeing a 8/21 EMA bull cross shifting momentum higher. A builder that could bounce back quickly to the 120 level with a...
Quick Weekly Breakout Trade in China Tech Leader
Baidu (BIDU) shares of the China internet name are bull flagging near 90 after the recent 8/21 EMA bull cross and jumped Friday to close just above the YTD VWAP. A quick trade above 90 could push towards 95 where the VPOC from last month sits as a target. BIDU has...
ETF Sector Corner: Quality Resilient Businesses in Uncertain Economic Times
iShares MSCI USA Quality Factor ETF (QUAL)- This ETF tracks an index that selects large- and mid-cap U.S. stocks based on quality factors like stable earnings growth and low debt-to-equity. QUAL is priced competitively with other single-factor funds that invest in...
Bull Put Spreads in Software Name Trading at Historically Cheap Valuations
Adobe (ADBE) started to bottom out with peers after it retested the 335 level and back to mid-2023 levels with its valuation now at just 17X earnings which is a 10 year low along with the stock trading at 6.5X sales even as it still projects to grow revenues 9% the...
Cyber Security Name Sets up Quick Breakout Trade
Fortinet (FTNT) shares of the cyber security name are showing fantastic relative strength as closed above monthly value and the 55 day EMA last week after seeing a solid rebound from the 200 day EMA support in the market selloff. Peers like ZS and CRWD continue to...
Bull Put Spreads in China Ecommerce Name Seeing Massive Put Sales into Support
PDD (PDD) has pulled back to one year value area low support near 90 and starting to stabilize with China peers as it has seen massive opening put sales this month seeing value in the 90 price region. PDD is the Temu operator as a top ecommerce name and is overall...
Quick Breakout Trade Setting up for Video Gamer
Take Two Interactive (TTWO) shares of the video game maker are staying one of the stronger consumer names in the market and just a bit off the highs made last month near 221 before the selloff in markets drove prices back to the earnings gap that filled near 190 but...
ETF Sector Corner: Smart Play for Robotics Secular Growth Opportunities
Global X Artificial Intelligence & Technology ETF (AIQ)- This ETF tracks a market-cap-weighted index of developed market equities involved in artificial intelligence & big data. The expense ratio of 0.68% is modest and compared to its rival fund BOTZ is more...
Bull Put Spreads in China Gaming Name Rebounding from Key Support
NetEase (NTES) has pulled back to the 200 week EMA and large volume shelf of support near 90 on the weekly chart and surged higher to end last week back over the 21 week EMA and near the 100 level. Options flows have seen opening put sellers sustain at strikes...
Cyber Security Leader Sets up Quick Option Trade
CrowdStrike (CRWD) shares of the cyber security leader have shown great relative strength as one of the growth stocks that did not close below its early March lows and last week surged higher off a double bottom retest of that low. Now a breakout above 380 can see a...