4 Trade Ideas for Altria: Bonus Idea

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

Altria, $MO, rose from a low in November to make a double top into April. It then retraced 38.2% of the move and found support later that month. Since then, it reversed to a lower high and then fell back again. It has been riding rising trend support since and ended last week breaking a short term channel to the upside. Above sits the May/June plateau and then the March high. If price can get above that a major long term reversal is triggered as it would print a higher high after a higher low, ending a 4 year downtrend.

The RSI is rising in the bullish zone with the MACD positive and moving higher. Momentum has been leading price. The move Friday closed the June gap down and opened the Bollinger Bands® for more upside potential. There is resistance higher at 50.70 and 52.50. Then we go back to 2019 to find it at 53 and 54.60 before 57 and 58. Support lower comes at 49 and 47.80 then 47 and 46.20. Short interest is low under 1%. The stock pays a dividend with an annual yield of 7.27%(!!!) and it starts trading ex-dividend on September 14th. The company is expected to report earnings next on October 28th.

The September options chain shows the open interest on the put side building from 55 down to a peak at 45 then tailing to 40. On the call side it is focused and very large at the 50 strike. The October chain has much less open interest but what there is can be found at the 47.50 put and the 50 call strikes. On the December chain the open interest is focused from 47.50 to 45 on the put side and much bigger at 50 on the call side with size at 60 as well.

Altria, Ticker: $MO

Trade Idea 1: By the stock on a move over 49.75 with a stop at 48.

Trade Idea 2: By the stock on a move over 49.75 and add an October 47.50/45 Put Spread (50 cents) while selling the December 55 Call (36 cents).

Trade Idea 3: By the December 50/October 52.50 Call Diagonal ($1.50) and sell the October 45 Put (35 cents).

Trade Idea 4: By the stock on a move over 49.75 and sell the September 51 Call (21 cents).

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After reviewing over 1,000 charts, I have found some good setups for the week. This week’s list contains the first five below to get you started early.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the last full week of August in the books, saw equity markets showed strength with aggressive moves higher and all-time highs.

Elsewhere look for Gold to continue its push out of long term consolidation higher while Crude Oil may also be resuming the uptrend. The US Dollar Index looks on the edge of breaking the long downtrend the while US Treasuries pause in their uptrend. The Shanghai Composite looks to continue in broad consolidation while Emerging Markets continue to be biased to move lower.

The Volatility Index looks to remain very low making the path easier for equity markets to the upside. Their charts also look strong, especially on the shorter timeframe where the IWM had a massive week. On the longer timeframe both the QQQ and SPY also look great while the IWM remains in the broad consolidation. 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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