Stock Of The Day / 01.14.25 / SIG01.14.2025 / NYSE:SIG
Fundamentals. Negative background due to lower fiscal fourth-quarter sales guidance.
Technical analysis.
Daily chart: We mark the nearest level 56.07, formed by the trend break in June 2023.
Premarket: Gap Down on moderate volume. We mark the premarket level 60.28.
Trading session: The price tests the premarket level after the opening and forms a pullback that does not exceed the opening impulse. After breakdown 60.28 level, we observe its retest on decreasing volumes. We consider a short trade in case the level is held.
Trading scenario: breakdown with retest of 60.28 level
Entry: 59.95 upon confirmation of the level holding by several touches and the appearance of volumes for sales.
Stop: 60.76 we hide it behind the high of the retest.
Exit: Close part of the position before the strong daily level of 56.07. Close the rest of the position at 55.00 after an unsuccessful attempt to update daily low.
Risk Rewards: 1/5
P.S. In order to understand the idea of the Stock Of The Day analysis, please read the following information .
SZ2 trade ideas
SIG Bearish inclined naked calls 21 Oct expiry
Whats The Plan/Trade/Thought
This trade rides on retails overall tightening as a reaction to the Fed and the Global central banks raising their interest rates
Risk Mitigation
The action at entry shows the price testing the bottom S&R line. I think we can expect more bearish movement from retail but otherwise we have enough space to the strike
Imagine Yourself Taking The Other Side
This trade is simply following the larger market movement. SIG has had good earnings and I believe is a pretty decent company. So going long is an option just not when the overall market is bear
Look For New Information
No new information
How Do I Feel Now
I feel normal, a bit affected by the other trade ICLN. But we do what we can and take what the market gives us.
Trade Specs
Sold 160 Calls @ 0.25
Strike 70
30.24% to Strike
BP Used: 87k
Max Gain: 3250
SIG Bearish inclined naked calls 15 July expiryWhats The Plan/Trade/Thought
Signet Jewelers is a retailer of diamond jewellery. With the concerns of the recession, the cooling signs of the job market, layoffs in tech and the overall retail leadership cautiousness during the earnings. I think this is the right direction especially since it is following the larger market direction
US retail sales also post the first drop in 5 months as auto purchases plunge and inflation bites
Risk Mitigation
Have two S&R lines before my strike at 69.49 and 65.35. If price breaks 69.49 (7% from strike) will have to start closing this position
Imagine Yourself Taking The Other Side
It just feels dangerous to be bullish especially since we have seen days where all sectors are red
Look For New Information
No new information
How Do I Feel Now
I feel confident about this trade
Trade specs
Sold 110 Calls @ 0.5
Strike 75
29.33% to Strike
BP Used: 66K
Max Gain: 5.5k