4 Trade Ideas for RTX Corporation: Bonus Idea

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

RTX Corporation, $RTX, comes into the week in a short consolidation after breaking resistance. It has Bollinger Bands® shifting higher to allow a move up. The RSI is in the bullish zone with the MACD positive and turning higher. There is resistance at 84.50 and 86.50 then 88 and 92 before 95.50 and a gap to fill to 96.50. Support lower comes at 83.50 and 82. Short interest is moderate at 4.8%. The stock pays a dividend with an annual yield of 2.80% and has traded ex-dividend since November 16th.

The company is expected to report earnings next on January 22nd. The January options chain shows the biggest open interest at the 90 and then 75 put strikes with size at 85, 81 and 80 as well. on the call side it is biggest at 80 and 90. In the January 26 Expiry open interest is lighter but biggest at 84 on the put side and 88 on the call side. The February chain shows open interest build from 85 to a peak at 75 then tail to 65 on the put side. The call side has large open interest from 80 to 95, largest at 95.

RTX Corporation, Ticker: $RTX

Trade Idea 1: Buy the stock on a move over 84.50 with a stop at 81.50.

Trade Idea 2: Buy the stock on a move over 84.50 and add a January 26 Expiry 84/80 Put Spread ($1.40) while selling the January 26 Expiry 88 Call (88 cents).

Trade Idea 3: Buy the February 85/January 26 Expiry 88 Call Diagonal ($1.85) while selling the January 26 Expiry 80 Put (68 cents).

Trade Idea 4: Buy the February 80/85/90 Call Spread Risk Reversal (75 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 this Holiday Discount Get Premium link.   

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 with 2023 in the books, saw equity markets showed major strength with a strong move higher in the Nasdaq all year that surpassed the large cap S&P 500 move that started in late 2022.

Elsewhere look for Gold to continue its uptrend while Crude Oil continues to move lower. The US Dollar Index looks to continue to drift to the downside while US Treasuries stall in their uptrend. The Shanghai Composite looks to bounce in its trend lower while Emerging Markets consolidate in a broad range.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. On the shorter timeframe the SPY, the QQQ and the small cap IWM could use a reset on momentum measures as all are extended. The IWM is pulling back with the SPY and QQQ looking vulnerable in the short term. 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