4 Trade Ideas for the Bank of NY: Bonus Idea

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

Bank of New York Mellon, $BK, comes into the week breaking above resistance and at an all-time high. The Bollinger Bands® are squeezed, often a precursor ahead of a move. The RSI is rising in the bullish zone with the MACD positive and trying to cross up. There is no resistance above 88.25, Friday’s high print. A Measured Move on continuation higher gives a target to 97. Support lower is at 87.75 and 84 then 82.50. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 2.14%. and started trading ex-dividend on January 27th.

The company is expected to report earnings next on April 14th. The February options chain shows biggest open interest at the 82.50 strike on the put side, and at the 87 and 82.50 strikes on the call side. The March chain has biggest open interest at the 82.50 and 85 strikes on the put side. The call side sees biggest open interest at 77.50 then 85. Finally, the June chain is the first to cover the next earnings report and sees open interest spread from 80 to 60 on the put side. On the call side it is biggest at 60 then 70 but has a cluster from 82.50 to 87.50 as well.

Bank of New York Mellon, Ticker: $BK

Trade Idea 1: Buy the stock on a move over 88.25 with a stop at 84.

Trade Idea 2: Buy the stock on a move over 88.25 and add a March 85 Put ($1.05) while selling a June 95 Call ($1.25).

Trade Idea 3: Buy the March/June 92.50 Call Calendar ($1.75) while selling the June 80 Put ($1.50).

Trade Idea 4: Buy the March 82.50/90/92.50 Call Spread Risk Reversal (35 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 heading into the Washington’s Birthday weekend and February options expiration, saw equity markets show strength with a rebound from more talk of tariffs and a rough inflation print.

Elsewhere look for Gold to possibly pullback or pause in the uptrend while Crude Oil consolidates in a broad range. The US Dollar Index looks to drift to the downside testing a breakout level that launched the uptrend while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue the short term move higher in broad consolidation while Emerging Markets continue a short term move higher.

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 with the SPY and QQQ leading the charge. On the shorter timeframe both the QQQ and SPY ended the week pennies from new all-time highs. The IWM, however, continues to muddle along in a range. 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