4 Trade Ideas for Anthem: Bonus Idea

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

Anthem, $ANTM, comes into the week at an all-time high and breaking a short term range. The Bollinger Bands® are opening higher as price pushes up. A first target would be a Measured Move higher equal to the move into the consolidation on the move up. This would be to about 510.

The RSI is rising in the bullish zone with the MACD positive and moving higher. There is no resistance above. Support lower comes at 470 and 457 then 438. Short interest is low under 1%. The stock pays a dividend with an annual yield of 1.07% and begins trading ex-dividend Wednesday. The company is expected to report earnings next on April 19th.

The March options chain shows little open interest but what there is focused at the 480 and 490 call strikes. The April chain is also light. The April 22 Expiry options cover the next earnings report but are just starting to trade. Finally, June options show biggest open interest at the 440 put and then down at 400. It is light on the call side and spread from 440 to 540.

Anthem, Ticker: $ANTM

Trade Idea 1: Buy the stock on a move over 478 with a stop at 468.

Trade Idea 2: Buy the stock on a move over 478 and add an April 22 Expiry 470/455 Put Spread ($9.10) while selling the April 22 Expiry 510 Calls ($8.70).

Trade Idea 3: Buy the March/April 490 Call Calendar ($10.30) and sell the April 450 Puts ($11.10) .

Trade Idea 4: Buy the April 22 Expiry 455/480/510 Call Spread Risk Reversal ($1.10).

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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 one week into the conflict in the Ukraine saw the equity markets looking jittery and volatile.

It is not helping that it is also a time when the Fed Chairman is speaking before Congress just two weeks before what has been a widely anticipated shift to a tightening monetary policy cycle. Are we having fun yet?

Elsewhere look for Gold and Crude Oil to continue their moves higher toward all-time highs. The US Dollar Index also looks to continue to the upside while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue in broad consolidation while Emerging Markets resumes its downtrend.

The Volatility Index looks to remain at a high level keeping the skittish news driven choppiness for equity markets. Their charts are looking weak on the shorter timeframe, making a series of lower highs since the end of the year tops. On the longer timeframe there are some mixed messages with the SPY continuing to hold over 7 month support, the IWM in sideways consolidation in a possible bear flag and the QQQ drifting lower in what might be a reversal pattern. 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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