4 Trade Ideas for Bank of New York Mellon: Bonus Idea

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

Bank of New York Mellon, $BK, started to move lower in January with a gap down to the 200 day SMA. It held there until the middle of February and then started lower again. In mid-March it made a bottom and has been slowly rising since. In early April it reached a 38.2% retracement of the drop and stalled. It has held there since, with the 50 day SMA now dropping to meet price. Friday it moved up to resistance for its highest close in 6 weeks.

The RSI is rising towards a move over 60 into the bullish zone. The MACD is also moving up and just turned positive. Even the Bollinger Bands® are now working a channel higher. There is resistance at 37.65 and 41 then 44 and 45 before 47.50 and 50.50. Support lower comes at 36 and 34.60 before 31.30. Short interest is low at 1%. The stock pays a dividend with an annual yield of 3.32% and begins trading ex-dividend April 27th. The company is not expected to report earnings again until July 15th.

The May 1 Expiry options chain shows light open interest. The May monthly chain has biggest open interest at the 35 put and the 40 call. The June chain has open interest build from 25 to 45 on the put side and is focused from 35 to 55 on the call side, biggest at 50 by far. The September chain is the first to cover the next earnings report. It has high open interest from 30 to 45, biggest at 35 on the put side. On the call side is focused from 40 to 50.

Bank of New York Mellon, Ticker: $BK

Trade Idea 1: Buy the stock on a move over 37.75 with a stop at 36.

Trade Idea 2: Buy the stock on a move over 37.75 and add a May 1 Expiry 37/34 Put Spread ($1.25) while selling the September 45 Call ($1.10).

Trade Idea 3: Buy the May/September 40 Call Calendar ($2.85) and sell the June 30 Put (50 cents).

Trade Idea 4: Buy September 30/40/45 Call Spread Risk Reversal for 65 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 which with the April options expiration complete sees equity markets continuing to show signs of recovery.

Elsewhere look for Gold to continue its pullback in the uptrend while Crude Oil consolidates in the down trend. The US Dollar Index continues to tighten its range while US Treasuries consolidate in their uptrend. The Shanghai Composite remains in broad consolidation while Emerging Markets continue their short term move higher.

The Volatility Index looks to continue to drift lower but at a high level making the path easier for equity markets to the upside. Their charts show the SPY and QQQ taking advantage of that and moving higher, showing strength especially on the longer timeframe. The IWM however looks like it needs to catch its breath and is pausing. 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