4 Trade Ideas for 3M: Bonus Idea

• Posted by Greg Harmon
• on March 3rd, 2025

Here is your Bonus Idea with links to the full Top Ten:

3M, $MMM, comes into the week approaching resistance. This is after a shallow pullback that reset the momentum gauges lower. It has a RSI rising in the bullish zone with the MACD positive and about to cross up. There is resistance at 155.50 and then back in 2021 at 160 and 162 then 165 and 169 before 170 and 173. Support lower is at 153 and 148. Short interest is low at 1.4%. The stock pays a dividend with an annual yield of 1.94% and has traded ex-dividend since February 14th.

The company is expected to report earnings next on April 28th. The March options chain shows biggest open interest at the 145 then 150 strikes on the put side. On the call side it is biggest at 150 and 155 then 165. The April chain has open interest spread from 160 down to 120, biggest at 140, on the put side. On the call side it is focused at 160. Finally, the May chain has open interest spread from 160 to 135, biggest at 155, on the put side. It is spread from 140 to 165, biggest at 150 on the call side.

3M, Ticker: $MMM

Trade Idea 1: Buy the stock on a move over 155.50 with a stop at 148.

Trade Idea 2: Buy the stock on a move over 155.50 and add a March 150 Put ($2.10) while selling the April 165 Calls ($1.82).

Trade Idea 3: Buy the April/May 160 Call Calendar ($4.05) while selling the April 145 Put ($1.50).

Trade Idea 4: Buy the May 145/160/170 Call Spread Risk Reversal ($1.00).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the month of February in the books, saw equity markets end with a seasonally weak period, raising the fear factor.

Elsewhere look for Gold to pause in its march higher while Crude Oil consolidates in the bottom of a broad range. The US Dollar Index looks to try to rebound to the upside while US Treasuries show some short term strength in consolidation. The Shanghai Composite looks to consolidate in the recent move higher while Emerging Markets shift to a short term move lower.

The Volatility Index looks to remain low but rising, making the path easier for equity markets to the downside. The charts of the SPY and QQQ look strong still on the longer timeframe, but on the shorter timeframe both, as well as the IWM, are showing signs of a deeper pullback. The IWM remains stuck in a channel on the longer timeframe. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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