4 Trade Ideas for Old Dominion Freight Line: Bonus Idea

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

Old Dominion Freight Line, $ODFL, comes into the week breaking resistance to a new all-time high. The RSI is rising in the bullish zone with the MACD crossing up and positive. The Bollinger Bands® may be opening to the upside. There is no resistance higher. Support below 224.50 sits at 218 and 214 before 210. Short interest is low at 2.2%. The stock pays a small dividend yielding 0.46% and has traded ex-dividend since March 5th.

The company is expected to report earnings next on April 24th. The April options chain has open interest spread from 220 to 195 on the put side. The call side has it focused at 220 then 230. In the May chain the is a slug at 205 on the put side and at 215 and 220 on the call side. Finally, the June chain sees open interest focused from 195 to 185 on the put side and at 250 and 260 on the call side.

Old Dominion Freight Line, Ticker: $ODFL

Trade Idea 1: Buy the stock on a move over 225 with a stop at 216.

Trade Idea 2: Buy the stock on a move over 225 and add a May 220/205 Put Spread ($5.55) while selling the May 240 Call ($4.40).

Trade Idea 3: Buy the April/May 230 Call Calendar ($5.90) while selling the May 205 Put ($2.35).

Trade Idea 4: Buy the June 210/230/250 Call Spread Risk Reversal ($1.70).

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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 April in the books, saw equity markets in need of a rest.

Elsewhere looked for Gold to continue its record run higher while Crude Oil continue its move to the upside as well. The US Dollar Index to continue the short term trend to the upside while US Treasuries may resume their downtrend. The Shanghai Composite looks to continue the short term move higher while Emerging Markets consolidate under long term resistance.

The Volatility Index looks to remain low making the path easier for equity markets to the upside. Their charts also look strong, especially on the longer timeframe. On the shorter timeframe the QQQ is at risk for some downside with the IWM in a messy short term uptrend and the SPY the strongest but also seeing some profit taking show up. 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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