S trade ideas
S - ShortSprint hit and appears to have rejected a resistance level of 3.9 with a dark cloud cover candlestick reversal pattern (the last candle opened above the close of the previous day, but closed down below its midpoint). Its RSI is also rather high.Based on historical support provided at 3.5ish back in November and December i predict that the stock will trend down and possibly consolidate between those two levels for a while. Over the next day or two a short position may exist. If the stock tries and rejects the support at 3.49/3.50, a long position may be possible with the expectation to take profits near its next approach to 3.9.
S -- COVERED CALL IDEAWith an implied volatility rank of 70, an implied of 63, and a 10%+ return for the nearest out of the money short call, S meets my criteria for a decent covered call play (plus the darn thing's so cheap).
Buy 100 Shares S at 3.85
Sell 1 Feb 19 4 short call
Entire Package: $358/contract
Max Profit: (If Called Away at 4) $42/contact
Sprint Corporation: consolidation under support levelOn the daily chart, Sprint Corporation is testing the support level at USD 5.5 from below. Notably, the stock broke through this level last year. The name is consolidating under this level, which could mean it may break out of this level to the upside, unlike the situation in September 2014. The price may also move downward toward the support level of a rising trend that formed in early 2015. Investors are advised to benefit from this movement, with buy-ins toward the USD 6 mark.
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Sprint at Critical SupportThursday brought huge volume after earnings report and a small bounce off support. Above average volume on Friday was able to keep Sprint from closing below its lows on 4/28. There is very noticeable momentum divergence to go along with this price level as the MACD histogram has been making a series of higher lows at this level. Looking for a 15% move for this stock back to mid 8's.
Sprint bounce off from major supportSprint is expected to report a smaller loss than in the first quarter as a massive network overhaul comes close to an end. Investors will look for any update on the company's planned $32 billion bid for T-Mobile, expected to be announced in the next few months. The bid has met with skepticism from regulators, who worry it could reduce competition in the near-saturated wireless market.
It has earnings today before market open. Map out levels to take decisions and react. I will be a buyer close to big support level at $7.50 which acted like resistance earlier. Yesterday, we had day #1 with pivot high at $8.08, above that expect to see more buying with potential first target at $8.60ish, next resistance at $9.50-.75 area.
Chart UpdateEngulfing candlestick with increased volume. Slow stochastic cross. Opened + closed above 100 SMA
S- still on the downsideMA200 providing support- for now. I believe in more downside until a reversal trend occures. It is making lower lows- that is a good sign. There is a good support @ around $6 and if that is not holding, maybe the next step is the L3?
