4 Trade Ideas for Intercontinental Exchange: Bonus Idea

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

Intercontinental Exchange, $ICE, parent of the NYSE, comes into the week reversing higher after retracing nearly 61.8% of the move from the pandemic low to the top in November. The volume on the last leg down preceding the turn was massive, indicating capitulation. The RSI has turned and is working up from deep in oversold territory. The MACD is leveling and negative. These are all good conditions for a possible reversal higher.

There is resistance at 99.50 and 103 then 105 and 107.50 before 109.50 and 114 then 117, a 50% retracement of the drop. Support lower is at 93.50. Short interest is low under 1%. The stock pays a dividend with an annual yield of 1.55% and will begin trading ex-dividend on June 14th. The company is expected to report earnings next on August 4th.

The May options chain shows the biggest open interest at 135 and the 110 on the put side. It is spread from 135 to 145 on the call side. The June chain has biggest open interest at the 100 the 105 put strikes and above at the 130 and 145 call strikes. The September options have biggest open interest at the 125 and 85 put strikes and at the 130 and 140 calls.

Intercontinental Exchange, Ticker: $ICE

Trade Idea 1: Buy the stock on a move over 99.50 with a stop at 93.50.

Trade Idea 2: Buy the stock on a move over 99.50 and add a June 95/90 Put Spread ($1.55) while selling the September 120 Call (85 cents).

Trade Idea 3: Buy the June/September 110 Call Calendar ($2.60) and sell the June 90 Put ($1.55).

Trade Idea 4: Buy the September 85/105/115 Call Spread Risk Reversal (10 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 heading into May options expiration week, saw equity markets showed a strong finish to a week that began really weak and fearful, giving hopes for the worst being over.

Elsewhere look for Gold to continue its pullback while Crude Oil consolidates for a possible move higher. The US Dollar Index continues to the upside while US Treasuries may see a bounce in their downtrend. The Shanghai Composite looks to continue the bounce in its downtrend while Emerging Markets continue to trend lower.

The Volatility Index looks to remain elevated making the path easier for equity markets to the downside. Their charts are set up for potential reversals on the longer timeframe, with Hammer candles after drops of over 30% for the IWM and QQQ, and almost 20% for the SPY. The daily charts are not convincing of a turnaround yet though with prior resistance closing in overhead. 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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