0JXD trade ideas
I would be a tough buyer on Macys, but...I would be a very tough buyer on Macy's, but around 24.07, not before nor after.
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Top of Bearish channelTraditional retail is failing in a bullish market. Will plummet when bull market ends.
Macy's Bullish BetLooks like Macy's is ready to go up:
1) Price broke above 200 EMA, and holding above it;
2) Down trend line broken;
3) RSI finding support at 50%
First Target 27$ - 27.80$ area, if broken next target 30.25
Stop Level 2 days close below 23.70$ or a 2% break below it ( 23.22$)
THE WEEK AHEAD: M, BBY, OIH, VIXEARNINGS ANNOUNCEMENT/VOL CONTRACTION PLAYS:
M announces earnings on 2/27 before market open. Preliminarily, the March 24/30 short strangle is paying .84 at the mid, which isn't very juicy. Given the size of the underlying, it may be more amenable to a short straddle or iron fly, with the March 9th 27 short straddle paying 2.95 and the 23/27/27/31 iron fly paying 2.13 with the longs camped out around the 16 delta strikes. I would shoot for 25% max profit or .74 in the case of the short straddle; .54 for the fly.
BBY announces on the 1st of March before market open. The March 9th 20-delta 66.5/81 short strangle is paying 2.05 at the mid, with the defined risk variant 63.5/66.5/81/84 iron condor paying just a smidge short of one-third the width of the wings -- .92/contract.
HIGH IMPLIED VOLATILITY EXCHANGE-TRADED FUNDS:
The exchange-traded funds screened for percentile greater than 70% and ranked by percentile are IYR (background 20%); XLI (background 20%); FXI (background 26%); EEM (background 22%); and XLU (background 18%). Ranked by background implied: GDXJ (33%; 33rd percentile); XOP (32%; 64th percentile); OIH (32%; 80th percentile); GDX (28%; 42nd percentile); and EWZ (28%; 19th percentile). Generally speaking, I like to pull the trigger on a premium selling trade when the percentile is greater than 70% and the background implied is greater than 35%, so I would pull the trigger on an OIH setup here, even though it's slightly short of that 35% background metric.
Here are a couple of possible plays:
Neutral Assumption/Undefined:
OIH April 20th 25 short straddle
Probability of Profit: 54%
Max Profit: $224/contract
Max Loss: Undefined
Break Evens: 22.76/27.24
Notes: Look to take profit at 25% max or .25 x 2.24 or .56/contract. Intratrade defenses: roll of untested side toward current price, delta hedging.
Neutral Assumption/Defined:
OIH April 20th 22/25/25/28 iron fly
Probability of Profit: 44%
Max Profit: $176/contract
Max Loss: $122/contract
Break Evens: 23.22/26.78
Notes: As with the short straddle, look to take profit at 25% max or .25 x 1.76 or .44/contract. Intratrade defenses: Delta hedging.
THE VIX
After this recent pop, I'm still watching the VIX and VIX futures term structure to return to its ordinary "contango look." While the structure has returned to contango if you look at the March, April, and May expiries, May is in backwardation relative to June, June in contango relative to July, July in backwardation relative to August, with the remainder of the structure in contango.
Trade Idea Of The Week MACYS INC (M)Forgot to post this yesterday, but we have been in this trade since Friday with some puts trying to ride this market during this large pullback. I am still going to post this because even with this bounce today I still think it has more room to fall.
Last week there was a huge turning point in momentum and the selling volume started to pick up. With the signs of the overall market weakening we decided to go bearish. We will ride this trade until the short term trend is broken on the 15minute/30minute candles.
Best of luck!
Selling Macy's due to runup in all stocks... Profit taking... I think there is big drop coming in all stocks... indices are topped off ... ready for a spill over
M swing trade?Good volume and strong lower wicks right on top of huge support. This could make the case of a nice swing trade in the making. If it breaks the lower wicks ride it down hard people in trap city.. If it shows any sign of strength let it ride.
Fib RetraceM, two large red candles formed following an upswing, needs to relax a bit, still learning
Price Target: 21.70
Stop Loss: 24.90
TimeFrame: 2nd of Feb
M long if 25 holds or short below 24.50M right by a critical decision point so this could be interesting.
M could be a short if it can sustain above the 200 EMA lineM is hitting both the resistance line and 200 EMA line so a lot of resistance. If it can not stay above the 200 EMA line, it could be a good short.
Brick and mortar stores are all oversold... It is time to buyI'm starting with Macy's the technical are turning around... my own personal experience with their app and purchase was superb in the last couple of days... they will do well in the long run if they are not bought out by online retailer... I have a feeling that many brick and mortar stores will be taken over by high growth low margin online outfits like amazon...
