4 Trade Ideas for State Street: Bonus Idea

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

State Street, $STT, started to move higher in November, confirming a double bottom with a gap up. It continued to a top in the middle of March and has basically moved sideways since. The stock has stayed in a range between 78 and 88 for 5 months. It comes into the week at the top of the range with the Bollinger Bands® opening higher. The RSI is at the edge of a move into the bullish zone as it rises. The MACD is positive and moving higher. There is resistance at 88.50 and then back in 2018 at 92 and 97.50 before 100.75. Support lower comes at 87 and 84.50 then 83 and 80.60. Short interest is low at 1%.

The stock pays a dividend with an annual yield of 2.62% and will next trade ex-dividend on September 30th. The company is expected to report earnings next on October 14th. The August options chain shows open interest between 85 and 80 on the put side. It is much bigger at 95 and 92.50 on the call side. In the September chain it is biggest at the 70 and then 80 strike puts. The call side is biggest at 87.50. In the November chain the 80 put has the largest open interest and on the call side it is at 85 with most other higher.

State Street, Ticker: $STT

Trade Idea 1: Buy the stock on a move over 88.50 with a stop at 83.50.

Trade Idea 2: Buy the stock on a move over 88.50 and add a September 85/80 Put Spread ($1.45) while selling the November 100 Call ($1.05).

Trade Idea 3: Buy the August/November 90 Call Calendar ($3.10) while selling the September 80 Puts (1.05).

Trade Idea 4: Buy the November 80/90/100 Call Spread Risk Reversal for 15 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 month of July in the books, saw equity markets showed some signs of being tired.

Elsewhere look for Gold to possibly reverse higher while Crude Oil continues in an uptrend. The US Dollar Index continues to drift to the downside in the short term while US Treasuries push higher in an uptrend. The Shanghai Composite looks to continue the short term move lower while Emerging Markets trend lower at support.

The Volatility Index looks to remain low making the path easier for equity markets to the upside. Their charts look strong on the longer timeframe with the exception of the IWM which remains marking time sideways. On the shorter timeframe both the QQQ and SPY shift to short term consolidation with momentum divergences while the IWM muddles along. 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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