What Dragonfly Capital Premium Means

• Posted by Greg Harmon
• on March 10th, 2014

Did you every wonder what Dragonfly Capital Premium means? If you have not had time to take a free 1 week trial here is a sample from this week’s Top 10 List:

h2>Free:

Theses were on the free post sent out Sunday night, available to everyone

Cullen/Frost Bankers, Ticker: $CFR

Cullen/Frost Bankers, $CFR, reached prior resistance Friday. The move higher seems to be carrying some momentum as the Relative Strength Index (RSI) and MACD are also rising, supporting more upside.

Diamond Offshore Drilling, Ticker: $DO

Diamond Offshore Drilling, $DO, had been collapsing since July before finding a bottom to start February. The higher low last week makes it attractive as it reaches prior resistance.

Premium:

These were what subscribers to the Premium service received for the same two trade ideas

Cullen/Frost Bankers, Ticker: $CFR

Cullen/Frost Bankers, $CFR, reached prior resistance Friday. The move higher seems to be carrying some momentum as the Relative Strength Index (RSI) and MACD are also rising, supporting more upside. The broad wide consolidation between 70 and 76.25 after the last broad one from 54 to 60 suggests a Measured Move higher to 89.50 eventually. The price action since late January has traced out a bearish Deep Crab harmonic with a Potential Reversal Zone (PRZ) at 80.61. And that is still below the target from an ascending triangle break at 82.60. Three ways to look higher. And if that was not enough short interest is elevated at 8%. There is resistance higher at 76.30 and then free air. Support lower comes at 74.80 and 73 followed by 70.90 and 70. Enter long on a move over 76.30 with a stop at 74.65. As it moves over 77 convert it to a $1.50 trailing stop and take off 1/3 on a stall at 89.50 or higher. Options are thinly traded in this name. Stick with the stock, unless you see a stall below 80 early next week and can get $1 by selling the March 80 Covered Calls.

Diamond Offshore Drilling, Ticker: $DO

Diamond Offshore Drilling, $DO, had been collapsing since July before finding a bottom to start February. The higher low last week makes it attractive as it reaches prior resistance. The ascending triangle forming caries a target of 51.45, above the 50 day Simple Moving Average (SMA) but still shy of the gap between 51.61 and 51.69 from late January. The price action has also been tracing a bearish Bat harmonic with a PRZ at 53.76. There is resistance at 48.50 and 50 followed by 51.61.-51.69 and then 54 before 56.80. Support lower comes at 46.85 and 46. Short interest at 10% is elevated and could result in a squeeze higher. Enter long on a move over 48.75 with a stop at 47.50. As it moves over 50 convert it to a $1.50 trailing stop and take off 1/3 on a stall at 56.80 or higher. As an options trade consider the March 48.5 Calls (offered at 88 cents late Friday) and trade them like the stock trade (using the stock price as a trigger, stop and target). As an alternative consider the March/April 50 Call Calendar (62 cents) looking for the March to expire worthless. You can offset some cost by also selling the April 45 Puts (42 cents).

Bottom Line:

Better charts, deeper analysis and defined actionable ideas. This is in addition to the Marco Weekly Review, Daily Earnings Trades and access for questions. So now you know.

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades from Amazon.

Dragonfly Capital Views Book Launch Celebration

For a Limited the Opportunity to join the Dragonfly Capital Views Premium Membership on an Annual basis is available for only $618.

This special Fibonacci rate (1000 divided by Φ) will be gone soon. Don’t miss this opportunity to join or upgrade! Sign up here. As part of this celebration, the first 25 annual subscriptions will also get the book*.

*book will be sent after payment is processed. It will also require you to send me your address for delivery.

Want to learn more about Dragonfly Capital Views?

Dragonfly Capital Views Performance Through February 2014 Expiry and sign up here for the free 7 day trial before you pay.

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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