4 Trade Ideas for American Express: Bonus Idea

• Posted by Greg Harmon
• on December 5th, 2022

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

American Express, $AXP, comes into the week back near the November high as it rises in a channel over the 20 day SMA. The Bollinger Bands® are rising along with the channel. The RSI is into the bullish zone with the MACD positive but flat. There is resistance at 158 and 162.50 then 166 and 170 before 172 and 174. Support lower sits at 155.50 and 153 then 150 and 148. Short interest is low under 1%. The stock pays a dividend with an annual yield of 1.33% and has traded ex-dividend since October 13th. The company is expected to report earnings next on January 23, 2023.

The December options chain shows the biggest open interest at the 145 put strike and the 170 call. In the January chain the biggest open interest is at the 160 put and then tails to 115. On the call side it is far and away the largest at the 110 strike. The April chain covers the earnings report and has open interest spread from 160 to 110 on the put side, and from 140 to 160 then also at 175 and 180 on the call side.

American Express, Ticker: $AXP

Trade Idea 1: Buy the stock on a move over 158 with a stop at 153.

Trade Idea 2: Buy the stock on a move over 158 and add a January 155/150 Put Spread ($1.90) while selling the January 170 Call ($1.60).

Trade Idea 3: Buy the January/April 165 Call Calendar ($6.10) and sell the January 140 Put ($1.55).

Trade Idea 4: Buy the April 135/160/170 Call Spread Risk Reversal (30 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with less than 1 month left in the year, saw equity markets continue to show strength, but not quite enough to declare an end to the bear market yet.

Elsewhere look for Gold to continue its short term rise while Crude Oil consolidates in a broad range. The US Dollar Index continues to trend to the downside while US Treasuries continue their short term uptrend. The Shanghai Composite looks to continue the short term move higher while Emerging Markets also improve.

The Volatility Index looks to continue to the downside in the normal range making the path easier for equity markets to the upside. Their charts also look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and IWM are finding new resistance while the SPY continues the march higher. 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.

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