4 Trade Ideas for Thermo Fisher: Bonus Idea

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

Thermo Fisher, $TMO, comes into the week pushing over resistance and filling the gap from February. The Bollinger Bands® are open higher with the RSI into overbought territory and then MACD positive and rising. There is resistance at 587 and 600 then 609 and 625 before 638 and 653 followed by 661 and 672. Support lower is at 567 and 560 then 546 and 541. Short interest is low at 1.1%. The stock pays a dividend with an annual yield of on 0.30% and has traded ex-dividend since September 15th.

The company is expected to report earnings next on January 28th. The November options chains shows biggest open interest at the 540 and 555 put strike sand at 600 then 570 and 620 on the call side. In the December chain open interest builds from 540 to a peak at 480 on the put side and is biggest at 560 on the call side. The January chain has biggest open interest at the 510 put strike and at 580, 600 and 620 on the call side. Finally, the March chain, the first to cover the earnings report, shows open interest biggest at the 520 put and the 580 the 600 and 610 call strikes.

Thermo Fisher, Ticker: $TMO

Trade Idea 1: Buy the stock on a move over 580 with a stop at 560.

Trade Idea 2: Buy the stock on a move over 580 and add a December 560/530 Put Spread ($8.70) while selling the January 630 Call ($7.50).

Trade Idea 3: Buy the November/January 610 Call Calendar ($10.45) while selling the December 540 Put ($7.40).

Trade Idea 4: Buy the March 530/590/630 Call Spread Risk Reversal ($3.00).

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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 following better than expected inflation data, a great start to earnings season and ahead of the FOMC meeting next week, saw equity markets flourishing at new all-time highs.

Elsewhere, look for Gold to continue the uptrend with some short term consolidation while Crude Oil moves higher off the bottom of consolidation. The US Dollar Index continues to drift in consolidation, while US Treasuries hold higher in their consolidation, continuing to tease of a reversal higher. The Shanghai Composite looks to continue the uptrend with new 10 year highs while Emerging Markets also continue their uptrend to new 4 year highs.

The Volatility Index looks to continue to drift lower in the normal zone freeing equity markets to move higher. The charts of the SPY, the IWM and the QQQ remain strong on the longer timeframe. On the shorter timeframe they all weathered the short term move lower and momentum reset and also look strong with the SPY and QQQ closing at all-time highs. 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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