On Friday, we enjoyed another solid bullish move in the markets. I think we’re starting to get a bit over-extended/overbought here, but by managing risk through setting stops, I’m confident in nibbling on small bullish positions.
$DIS: 25 shares. Current Status: 2.2%. Plan: Sell at Target 1: $113.16. Earnings: 6 Feb
$HD: 2 February $195 calls. Current Status: Closed one contract for 35 gain%. Plan: HD had an ugly candle on Friday. Not sure what caused the massive sell-off in the afternoon. However, I’m still holding one contract, look at Target 2: $202.27. Earnings: 13 Feb
$IWM: 2 March $157 calls. Current Status: Closed position for 46% gain. I only intended to close 1 contract, but had a lag in my app where I inadvertently sold two. I’m tempted to get back in with one contract, but don’t want to push my luck since Target 1 was hit. I’m very happy with the profit I locked in.
$JNJ: 2 February $145 calls. Current Status: +4.5%. Plan: Trim 1 call at Target 1: 148.63. Ensure position is closed prior to earnings. Earnings: 23 January.
$WMT: 2 March $100 calls. Current Status: 0%. Plan: My plan remains to trim 1 call at Target 1: $103.85. Not the prettiest candle, but there’s no reason why we can’t continue higher. Earnings: 15 Feb
$AAPL: After flirting with the line for a while, Apple finally saw a breakout. I’m not in love with $AAPL’s price action, but I do think it’s worth taking a trade here assuming the 5 minute candle rule works out. Target 1: $182.13 Target2: $189.59.
$BEAT: I’m honestly not familiar with this company, but based on the chart, it has broken out and looks like it has room to run. Friday was a strong candle and I’d be interested in buying shares instead of options (due to low OPT interest) assuming successful 5minute rule. Target 1: $34.14 Target 2: $36.42
$MMM: 3M had a breakout-ish candle on Friday. Again, not the prettiest candle, but it is technically above the breakout line. I would consider a small position based on the 5 minute rule. Target 1: $249.06 Target 2: $255.33
$PYPL: PayPal technically broke out on Thursday, with confirmation on Friday. 5 minute rule to get in on the action. Target 1: $82.27 Target 2: $86.02
Other Types of Breakouts
$C: Citigroup broke out of it’s wedge/triangle pattern on Friday. Although it still needs to get through it’s breakout price level ($77.83), the fact it broke bullishly from the pattern is a positive sign. I would consider getting in tomorrow based on the 5 minute rule. Target 1: $79.64. Target 2: $81.97
$DNKN: Who doesn’t like Dunkin Donuts? haha Well even if you’re not a fan, you should like the strong bounce off of the 50% Fib re-tracement price. Once again, observe the 5 minute rule, and if it permits, get in the trade. Breakout line: $66.43 Target 1: $68.35 Target 2: $70.82.