DailyPlay

The bearish DailyPlay we chose for Friday, March 22nd is Delta (DAL). DAL is part of the Industrial Sector (XLI). XLI has fallen 1.82% over the past month and its 1m and 6m trends turned neutral and bearish on March 7th while bouncing lower off its $75 resistance level. 

Delta’s 1m and 6m trends turned neutral yesterday and recently bounced lower off its $51 resistance level. With a technical score of 4 (out of 10), DAL is a weak stock that will likely trade lower on earnings.

As a stop loss, if DAL was to trade above $51 for multiple days, this would invalidate our analysis and suggest getting out of the trade.

The bullish DailyPlay we chose for Thursday, March 21st is Autodesk (ADKS). ADSK is part of the Technology Sector (XLK). XLK has rallied 5.18% higher over the past month and its 1m and 6m trend turned bullish on March 11th while breaking above its $72 resistance level.

Autodesk’s 1m and 6m trends turned bullish yesterday and recently broke above its $52 resistance level. With a technical score of 8 (out of 10), ADSK is a bullish stock that will likely continue higher.

As a stop loss, if ADSK was to trade below $150 for multiple days, this would invalidate our analysis and suggest getting out of the trade.

Alert: This is an earnings play, TIF reports earnings on March 22nd

The bearish DailyPlay we chose for Wednesday, March 20th is Tiffany (TIF). TIF is part of the Consumer Discretionary Sector (XLY). XLY has rallied 1.97% higher over the past month and its 1m and 6m trends turned bullish on April 15th, but is currently overbought and testing a major resistance level at $113.

Tiffany’s 1m and 6m trends turned neutral and bullish on January 30th and have been overbought for weeks with resistance at $99. With a technical score of 3 (out of 10), TIF is a weak stock that will likely trade lower on earnings.

As a stop loss, if TIF was to trade above $99 for multiple days, this would invalidate our analysis and suggest getting out of the trade.

The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.

On Friday’s Options Action, the crew analyzed the performance of Boeing stock after the recent airliner crash. Boeing fell about 10% following the news, but there are considerable downside risks as investigations continue. Coupled with strong support near $290 lows, there are risks of further declines. Expecting BA to trade lower, Michael Khouw suggests buying a May 340/315 1×2 Put Ratio for a $0.00 even. As of Friday’s close, these puts were trading at a $0.30 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: BA Options Action Video

The bullish DailyPlay we chose for Friday, March 15th is Bank of NY (BK). BK is part of the Financial Sector (XLF). XLF has rallied 1.72% higher over the past month and its 1m and 6m trend turned bullish on March 13th while breaking above its $26 resistance level.

Bank of NY’s 1m and 6m trends turned bullish yesterday and recently broke above its $52 resistance level. With a technical score of 7 (out of 10), BK is a bullish stock that will likely continue higher.

As a stop loss, if BK was to trade below $52 for multiple days, this would invalidate our analysis and suggest getting out of the trade.

The bullish DailyPlay we chose for Thursday, March 14th is Whirlpool (WHR). WHR is part of the Consumer Discretionary Sector (XLY). XLY has rallied 3.06% higher over the past month and its 1m and 6m trend turned bullish yesterday while bouncing higher off its $107 support level.

Whirlpool’s 1m and 6m trends turned bullish on March 12th and recently bounced off its $135 support level. With a technical score of 9 (out of 10), WHR is a bullish stock that will likely continue higher.

As a stop loss, if WHR was to trade below $135 for multiple days, this would invalidate our analysis and suggest getting out of the trade.

The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.

On Friday’s Options Action, the crew analyzed the performance of the utility sector. Utilities have outperformed the S&P 500 over the past year by a wide margin and are making new highs as equity markets turn lower. Coupled with a lower interest rate environment, yields on XLU provide an attractive investment. Expecting XLU to continue higher, Michael Khouw suggests buying a May 57 Call for a $1.25 Debit. As of Friday’s close, these calls were trading at a $1.46 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: XLU Options Action Video