4 Trade Ideas for Procter & Gamble: Bonus Idea

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

Procter & Gamble, $PG, comes into the week at short term resistance. Since the start of the year it has made a series of higher highs and higher lows and is now solidly over the 100 day SMA, something it has not done for more than 1 day since the end of May last year. The Bollinger Bands® are open higher. The RSI is rising in the bullish zone with the MACD positive and moving higher. There is resistance at 152 and 153.75 then 155.50 and 157 before 158.75 and 160.25. Support lower is at 150.25 and 147.25. Short interest is low under 1%. The stock pays a dividend with an annual yield of 2.79% and started trading ex-dividend on January 23rd.

The company is expected to report earnings next on April 22nd. The February options chain has biggest open interest at the 146 put strike and at the 145 call then the 150 strike. The March chain has big open interest from 150 to 130 on the put side and from 145 to 180 on the call side. In the April chain open interest is large from 145 to 130 on the put side and much bigger at 160 on the call side. Finally, the June chain has very large open interest at the 135 put and 165 call strikes.

Procter & Gamble, Ticker: $PG

Trade Idea 1: Buy the stock on a move over 152 with a stop at 146.

Trade Idea 2: Buy the stock on a move over 152 and add a March 150/140 Put Spread ($2.17) while selling the June 165 Calls ($2.06).

Trade Idea 3: Buy the March/June 160 Call Calendar ($2.78) while selling the April 140 Puts ($1.30).

Trade Idea 4: Buy the April 140/155/160 Call Spread Risk Reversal (85 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 January FOMC meeting in the books and a formal announcement of Kevin Warsh as the new Fed Chair nominee, saw equity markets show strength holding near and setting new highs.

Elsewhere, look for Gold to pause in the uptrend after tagging $5600/oz and pulling back while Crude Oil moves higher in the consolidation range. The US Dollar Index is finding its footing after a 4 year low while US Treasuries continue to hold in the lower end of the consolidation zone and looking better lower. The Shanghai Composite looks ready to continue the uptrend at 10½ year highs while Emerging Markets reset momentum gauges after making new all-time highs in their uptrend.

The Volatility Index looks to continue to hold 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 resetting with a retest of the prior high as support. The SPY and QQQ continue to be stuck in consolidation at their highs. 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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