Expert technical analysis of financial markets by JC Parets
We have 2 new Options trades this week as our Thanksgiving Pairing. A Bull Call Spread in Unity Software $U and Bullish Risk Reversal in Cheniere Energy $LNG.
Here are the plays:
We’re buying a $U February 200/250 Bull Call Spread for around a $10.00 debit.
And an $LNG June 90/130 Bullish Risk Reversal for an approximately 25 cents net credit.
Check out our short video with the thought process behind these trades: [Read more…]
Given an opportunity, JC will gladly talk your ear off about proper wine pairings for your Thanksgiving meals. No matter your flavor or preference, JC can find something that works. After all, he did get his sommeliers certification.
During this morning’s analyst meeting, we were discussing what trade we wanted to put on today and we had two great ideas. We debated the merits of each, and we couldn’t decide which one we liked best right now.
Stock 1 or Stock 2?
Bills or Dolphins?
Gators or Hurricanes?
Cats or Dogs?
And then in typical JC fashion he said:
Why not both?
And my response was: “Of course! Why not? We’ll call it a Thanksgiving Pairing!”
So here we are. [Read more…]
This past weekend, I finished reading an illuminating book titled “Empires of Light” (see what I did there?), that dug into the origins of modern electric power as viewed through the lens of the first titans of industry to bring it to the masses: Thomas Edison, George Westinghouse, and Nikola Tesla. It was a fantastic read. And one that hit home due to the fact I grew up less than 20 miles away from Niagara Falls, a location which figures prominently in the birth of the nation’s electric grid and modeled how to spread electricity transmission throughout the world.
So, it must be kizmit that the best idea on the table for me to choose from today comes from the energy space — a $170B company that generates, distributes, and sells electric power to customers in North America.
Wednesdays are becoming my favorite trading day of the week.
What the heck is so special about Wednesday? Well, nothing really. But it’s the day when all the All Star Charts analysts converge on a weekly internal zoom call and throw out our best observations and ideas. We start identifying themes. What’s new? What’s old? Where aren’t people looking? Where are our blind spots? What would have to happen for us to change our view? What’s the best music to listen to while charting and strategizing? (I prefer anything instrumental — no singing).
Now, to be fair, when the nerds start geeking out about currency pair relationships and long-end versus the short-end of interest rates, that’s when I pretend to be listening and interested. But when the conversation comes back around to individual stocks, that’s when my ears perk up.
So, today, when it came around the horn to me, I mentioned to the guys that I’m really liking this setup in Valvoline $VVV that the team highlighted in their most recent Young Aristocrats report. [Read more…]
A stock recently got on our radar after share prices exploded higher following a recent earnings report.
Now that the market has given players in this stock some time to marinate in the new reality presented during this last quarterly report, options premiums are beginning to return to normal (ie “low”) prices. And this is making it more compelling for us to position for what we feel is another leg higher. [Read more…]
Well, once again we saw a little downside action this week and the noise-makers on the twitter and the teevee got all revved up. Cool. Whatever drives clicks, you maniacs.
Meanwhile, those of us who keep our heads about us while others are going insane are looking for opportunities to sell some premium into the somewhat elevated volatility premiums we see in options during times like this.
So, I did my periodic scan across the ETF landscape to see which sectors were sporting the highest relative implied volatilities while also showing the potential for rangebound activity over the next several weeks.
And I like what turned up…
Today’s post has inspired today’s musical soundtrack that is oozing out my speakers as I type this.
The Rolling Stones’ album Exile on Main St marked a turning point in the trajectory of Rolling Stones lore.
And it feels fitting as today’s trade idea has Main Street in its name and it, too, is exhibiting classic characteristics of a major breakout. [Read more…]
That’s right, I’m on the couch, settled in for a nice rom-com with the wife, passing the chip dip, and thinking about the stock dip I’m about to buy.
Sometimes, this is where and when my best ideas hit me. How about you?
But in the case, it just so happens the All Star team was already one step ahead of me on today’s idea as they covered it in their recent Monthly Charts Strategy Session last week. At least now I get to enter at a better price!
