Teladoc (TDOC) – Telemedicine Stays – April 20th, 2020
Bullish – TDOC – $173.27
The S&P 500 (SPY) has continued to rally after breaking above its $284 resistance level on COVID optimism and earnings season data. Recovery was swift after fiscal policy provided more than 2 trillion dollars of aid to the US economy. We expect markets to remain calmer and grind higher towards its $302 resistance and remain rangebound between these 2 levels. If we break back below $284, we risk revisiting $235 to the downside.
SPY Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang looked at the growth in telemedicine during COVID-19. Growth and momentum had already ignited before the coronavirus and lockdowns have pushed consumers to taking doctor appointments digitally. Expecting TDOC strength to continue, Tony suggests Selling a May $170/150 Put Vertical @ $8.00 Credit. As of Friday’s close, these puts were trading at $8.40 Credit.
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: TDOC Options Action Trade