4 Trade Ideas for TJX: Bonus Idea

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

TJX, $TJX, comes into the week at an all-time high. It is also pressing to the top of a short term consolidation zone over the past 2 weeks. The Bollinger Bands® have squeezed over June and are now opening higher. There is a short term Measured Move on a break higher targeting 114 as a starting point. The RSI is strong and slightly overbought in the bullish zone with the MACD leveling after a reset lower in the positive range. There is no resistance above 111.75. Support lower sits at 110 and 107. Short interest is low at 1.3%. The stock pays a dividend with an annual yield of 1.34% and will start to trade ex-dividend on August 15th.

The company is expected to report earnings next on August 21st. The July options chain shows the biggest open interest at the 105 strike on the put side. On the call side it is biggest at 110 then 105. The August chain has biggest open interest at the 110 put strike and the 120 call. The August 23 Expiry, covering the earnings report, gives no information as the is 1 contract in open interest (not a misprint). The September chain has its biggest open interest at the 110 and 105 put strikes and the 115 and 125 call.

TJX, Ticker: $TJX

Trade Idea 1: Buy the stock on a move over 112 with a stop at 109.

Trade Idea 2: Buy the stock on a move over 112 and add an August 23 Expiry 109/102 Put Spread ($1.60) while selling the September 120 Call ($1.02).

Trade Idea 3: Buy the August/September 115 Call Calendar ($1.55) while selling the August 105 Put (42 cents).

Trade Idea 4: Buy the August 105/115/120 Call Spread Risk Reversal (50 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 with the first week of July in the books, saw equity markets showing strength from the large cap and tech focused S&P 500 and Nasdaq 100, but continued churn from the small caps.

Elsewhere look for Gold to continue its consolidation in the uptrend while Crude Oil consolidates in a tightening range. The US Dollar Index continues to drift to the downside in consolidation while US Treasuries move lower in their downtrend. The Shanghai Composite looks to continue the short term move lower while Emerging Markets remain in broad consolidation.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. The charts of the SPY and QQQ look strong, especially on the longer timeframe. On the shorter timeframe both the QQQ and SPY have reset momentum measures and both are also looking strong upon reversing. The IWM continues to be dead money, going on 30 months now. Use this information as you prepare for the coming week and trad’em well.

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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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