4 Trade Ideas for Aflac: Bonus Idea

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

Aflac, $AFL, comes into the week rounding up out of a pullback. It has a RSI rising above the midline toward the bullish zone with the MACD crossed up and rising but negative. There is resistance at 110.50 and 112.25 then 114.25 and 116.50 before 118. Support lower is at 109 and 107. Short interest is low at 1.8%. The stock pays a dividend with an annual yield of 2.21% and has traded ex-dividend since February 18th.

The company is expected to report earnings next on April 29th. The April options chain show the biggest open interest at the 102 and 110 put strikes and at 120 then 110 and 105 on the call side. In the May chain, open interest is spread from 115 to 95, biggest at 95, on the put side and focused at 115 and 120 on the call side. The June chain has biggest open interest at the 110 put and 115 call strikes.

Aflac, Ticker: $AFL

Trade Idea 1: Buy the stock on a move over 110.50 with a stop at 106.50.

Trade Idea 2: Buy the stock on a move over 110.50 and add a May 105/100 Put Spread ($1.30) while selling the May 120 Call (45 cents).

Trade Idea 3: Buy the April/May 115 Call Calendar ($1.50) while selling the May 105 Puts ($1.45).

Trade Idea 4: Buy the June 100/115/120 Call Spread Risk Reversal (85 cents).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

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 with the shortened pre-Easter week in the books, saw equities show some green shoots after a 5 week run lower.

Elsewhere, look for Gold to continue to recover in the pullback while Crude Oil continues to surge bear 4 year highs and closing in on the 2008 all-time highs. The US Dollar Index looks to continue to press on resistance in consolidation while US Treasuries hold over 15 month support. The Shanghai Composite looks to continue a short term downtrend at possible support while Emerging Markets seek support in the pullback in their uptrend.

The Volatility Index looks to continue to improve in elevated territory keeping some pressure on equities. The charts of the SPY and the QQQ are finding their legs on the longer timeframe as bearish momentum improves while the IWM looks to resume its uptrend. On the shorter timeframe the SPY and the QQQ are showing signs of a nascent reversal though with lots of work left to do, while the IWM holds up with relative strength over is long term moving average in consolidation in its short term downtrend. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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.

blog comments powered by Disqus
Dragonfly Caps Blog