Trade Ideas | 2/11/19

February 11, 2019

IV is dropping across the market, so these ideas are mainly for Low IV, Delta neutral (Iron Fly) trades.

 

$CPRI - This stock has highish IV against a market where IV is consistently dropping. Like most of these ideas, recent highs were hit on earnings and the stock price turned back. That usually is a signal of tough resistance; if a stock can't break resistance even on an earnings beat, that resistance is quite stiff. So, I think $CPRI will form a range and consolidate.

 

$QCOM - This stock has had a tough go of it for a while now, and with earnings recently, shows no sign of reclaiming former highs. I think the stock will hang out down here near the lows until a catalyst drives it higher; this stock has sat out from the market rebound, notably.

 

$GM - The stock has had a big run and hit highs on earnings before coming back a bit. I think that level, 41ish, will be strong resistance, and that since $GM has had such a big run that the stock will consolidate between 36 and 41 for a time.

 

$CMCSA - This stock has actually traded higher after an earnings report that had the stock trade lower. 35 seems to be a "bend-don't-break" support level, with 39 being stiff resistance. With $CMCSA at 37 right now, that's perfectly centered and a good opportunity for an Iron Fly or Calendar.

 

$JPM - This stock has had a huge recovery along with the market, but noticeably failed to reclaim 105 several times. I believe that serves as stiff resistance, but with the stock only now trading at 101 ... this idea isn't as strong as the others. But, if the market overall consolidates, so too will $JPM, and with the huge credit taken in on a Iron Fly, you won't need to wait for too long before time decay allows you to take a small profit.

 

 

 

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