4 Trade Ideas for Kraft Heinz: Bonus Idea

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

Kraft Heinz, $KHC, comes into the week bouncing up towards short-term resistance. It is over the 20 day SMA again as it rises. It has an RSI turning higher at the midline in the bullish zone with the MACD looking to rebound into positive territory after a reset at zero. There is resistance at 25.80 and 26.35 before 27 and 28 then 29. Support is at 25.25 and 24.75. Short interest is elevated at 7.3%. The stock pays a dividend with an annual yield of 6.23% and will begin trading ex-dividend September 4th.

The company is expected to report earnings next on October 27th. The September options chain has biggest open interest at the 22.50 put and on the call side at 27.50. In the October chain open interest is large from 25 down to 20 on the put side biggest at 22.50. On the call side is biggest at 27.50. Finally, in the December chain open interest builds from 27.50 to a peak at 20 on the put side. And peaks at 25 and trails down to 30 on the call side.

Kraft Heinz, Ticker: $KHC

Trade Idea 1: Buy the stock on a move over 26 with a stop at 25.

Trade Idea 2: Buy the stock on a move over 26 and add an October 25 Put (84 cents) while selling a December 30 Call (27 cents).

Trade Idea 3: Buy the September/October 27.50 Call Calendar (25 cents) while selling the September 24.50 Put (26 cents).

Trade Idea 4: Buy the December 22.50/27.50/30 Call Spread Risk Reversal (4 cents).

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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 Fed Jackson Hole Economic Symposium in the books and only 1 trading day left in August, saw equity markets remain a bit unsettled but biased higher, following continued confusion about the Fed’s focus.

Elsewhere, look for Gold to pause or reverse in its uptrend with Crude Oil consolidating. The US Dollar Index looks to continue the week’s strengthening while US Treasuries hold the move lower at 22 year lows in price. The Shanghai Composite looks to continue the move higher while Emerging Markets pause in their uptrend.

The Volatility Index looks to continue in the normal zone at the lows of the year keeping a slight tailwind behind equities. The chart of the SPY and QQQ are slowly rising with the short term SMA on the shorter timeframe, while the IWM is falling back below it. They all continue to look strong on the longer timeframe consolidating at the highs. 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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