4 Trade Ideas for McCormick: Bonus Idea

• Posted by Greg Harmon
• on February 10th, 2025

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

McCormick, $MKC, comes into the week rising to resistance. It has Bollinger Bands® rising to allow a further move higher. The RSI is rising in the bullish zone with the MACD positive and rising. There is resistance above 78.25 at 79.50 and 80 then 82 and 83 before 84 and 85.50. Support lower is at 77 and 76. Short interest is low at 2.3%. The stock pays a dividend with an annual yield of 2.30% and has traded ex-dividend since December 30th.

The company is expected to report earnings net on March 24th. The February options chain has biggest open interest at the 75 then 70 put strikes, and even bigger at the 75 call strike. In the March chain it is spread from 80 to 70 on the put side and from 75 to 85 on the call side. Finally, the June chain is the first to cover the next earnings report, and is just starting to accumulate open interest. It has biggest open interest at the 75 then 60 strike on the put side. On the call side it is spread from 80 to 90, biggest at 80.

McCormick, Ticker: $MKC

Trade Idea 1: Buy the stock on a move over 78.50 with a stop at 75.50.

Trade Idea 2: Buy the stock on a move over 78.50 and add a March 75/70 Put Spread (90 cents) while selling the June 90 Calls (50 cents).

Trade Idea 3: Buy the March/June 80 Call Calendar ($1.95) while selling the March 75 Put (95 cents).

Trade Idea 4: Buy the June 75/80/85 Call Spread Risk Reversal (5 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 first week of February in the books, saw equity markets show resilience with a rebound from an ugly start anticipating tariffs.

Elsewhere look for Gold to continue its assault on $3000/oz while Crude Oil falls in consolidation in a broad range. The US Dollar Index looks to pause in the drift to the upside while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue to consolidate while Emerging Markets continue a short term move lower.

The Volatility Index looks to remain low and stable, making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe consolidation ranges continue to hold the QQQ and SPY just under all-time highs with the IWM consolidating at resistance. 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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