4 Trade Ideas for Conagra: Bonus Idea

• Posted by Greg Harmon
• on September 9th, 2024

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

Conagra, $CAG, comes into the week confirming a reversal higher as it makes a higher high. The price is riding the open Bollinger Bands® higher. The RSI is rising in the bullish zone with the MACD rising and positive. There is resistance at 33.50 and 35 then 36.85 and 38.65 before 39.20 and 40 then 41. Support lower is at 31.60 and 31 then 30.50. Short interest is moderate at 3%. The stock pays a dividend with an annual yield of 4.28% and began trading ex-dividend on August 1st.

The company is expected to report earnings next on October 2nd. The September options chain shows open interest spread from 31 to 25 on the put side, biggest at 31. On the call side it is big from 30 to 35, largest at 31. The October chain has little open interest on the put side but big size at the 33 call strike. Finally, the December chain has big open interest at the 29 then 27 and 30 put strikes. On the call side it is big from 30 to 35, biggest at 35.

Conagra, Ticker: $CAG

Trade Idea 1: Buy the stock on a move over 33 with a stop at 31.50.

Trade Idea 2: Buy the stock on a move over 33 and add an October 32/30 Put Spread (50 cents) while selling the December 36 Call (35 cents).

Trade Idea 3: Buy the October/December 35 Call Calendar (50 cents) while selling the October 30 Put (20 cents).

Trade Idea 4: Buy the December 30/33/35 Call Spread Risk Reversal (45 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 the Get Premium button above.   

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 September in the books, saw equity markets revert to weakness, trending lower all week.

Elsewhere look for Gold to continue its uptrend while Crude Oil continues to move lower. The US Dollar Index continues in broad consolidation while US Treasuries show signs of a possible new uptrend. The Shanghai Composite looks to continue the downtrend while Emerging Markets drop back into a short term downtrend.

The Volatility Index looks to shift from low and stable to low and rising making the path more difficult for equity markets. Their charts look weak om the shorter time frame as price pulls back from a lower high, but they remain above making a lower low for now. On the longer timeframe they look stronger, but vulnerable with the SPY strongest then the IWM and the QQQ the weakest. 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