4 Trade Ideas for Unilever: Bonus Idea

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

Unilever, $UL, comes into the week pushing up to resistance with a bullish Marubozu candle. The Bollinger Bands® pushed open on the move. This also made for a higher high and confirmed a double bottom. It remains under the 100 and 200 day SMA’s, so there is still work to do. It has a RSI rising into the bullish zone with the MACD crossing to positive. There is resistance at 67 and 67.75 then 68.75 and 69.50 before 70.25 and 71 . Support lower is at 66.25 and 65.50. Short interest is low under 1%. The ADR pays a dividend with an annual yield of 3.42% and has traded ex-dividend since November 7th.

The company is expected to report earnings on February 12th before the market open. The February options chain shows biggest open interest at the 60 then 65 strikes on the put side. On the call side it is biggest at the 67.50 strike. In the March chain the biggest open interest is at the 75 strike on the put side and the 67.50 strike on the call side. Finally, in the May chain, open interest is biggest at the 60 and 65 put strikes and then 65 call strike.

Unilever, Ticker: $UL

Trade Idea 1: Buy the stock on a move over 67 with a stop at 64.50.

Trade Idea 2: Buy the stock on a move over 67 and add a February 65 Put (85 cents) while selling a May 72.50 Call (80 cents).

Trade Idea 3: Buy the February/March 70 Call Calendar (70 cents) While selling the March 62.50 Put (55 cents).

Trade Idea 4: Buy the March 62.50/67.50/70 Call Spread Risk Reversal (15 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 next week’s FOMC meeting, saw equity markets show resilience snapping back after a news driven sell off to start the week.

Elsewhere, look for Gold to continue the uptrend in pursuit of $5000/oz while Crude Oil drifts in the consolidation range. The US Dollar Index is shifting to the downside continue to hold at 3½ month lows in consolidation and looking better lower. The Shanghai Composite looks ready to continue the uptrend at 10½ year highs while Emerging Markets continue to make new all-time highs in their uptrend.

The Volatility Index looks to hold low in the normal range making it easier for equities to move higher. The charts of the SPY, the IWM and the QQQ remain strong on the longer timeframe with the IWM leading. On the shorter timeframe the IWM is also strong but possibly ready for a pause after new all-time highs. The SPY and QQQ continue to be stuck in consolidation. 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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