4 Trade Ideas for CBOE: Bonus Idea

• Posted by Greg Harmon
• on December 30th, 2024

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

CBOE Global Markets, $CBOE, comes into the week trying to round out a bottom in a pullback to the 200 day SMA. A Measured Move would take it to 214. The RSI is rising towards the midline with the MACD curling to cross up but negative. There is resistance at 201 and 202 then 205 and 209 before 212 and 213.50. Support lower is at 195.50 and 191. Short interest is moderate at 3%. The stock pays a dividend with an annual yield of 1.28% and has traded ex-dividend since November 29th.

The company is expected to report earnings next on February 7th. The January options chain shows the biggest open interest at the 200 and then 180 strikes on the put side and at the 200 strike on the call side. The February chain is just starting to trade with little open interest yet. The March chain has biggest open interest at the 180 then 170 strikes on the put side. the call side is spread from 210 to 230.

CBOE Global Markets, Ticker: $CBOE

Trade Idea 1: Buy the stock on a move over 198 with a stop at 191.

Trade Idea 2: Buy the stock on a move over 198 and add a January 195/187.50 Put Spread ($2.15) while selling the February 210 Calls ($2.45).

Trade Idea 3: Buy the January/February 210 call Calendar ($2.50) while selling the February 185 Put ($2.25).

Trade Idea 4: Buy the March 185/200/210 Call Spread Risk Reversal ($1.90).

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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 just 2 trading days left in 2024, saw the week show some disappointment in equity markets following a strong rebound early.

Elsewhere look for Gold to continue to consolidate the major move higher while Crude Oil consolidates in the lower end of a broad range. The US Dollar Index continues to hold at resistance while US Treasuries pullback in consolidation. The Shanghai Composite looks to consolidate in its uptrend while Emerging Markets may be reversing their uptrend.

The Volatility Index looks to remain low making the path easier for equity markets to the upside. The charts of the SPY and QQQ continue to look strong on the longer timeframe. On the shorter timeframe both look a little weaker. The IWM is now weak enough that it is threatening the uptrend. 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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