Review of Session: Divergence in the equities says we have yet to find directional conviction, despite new ATHs in the S&P
Next Session: For Wednesday, we have FOMC minutes that will be a catalyst to the auction.
From the Quicksheet: $VZ is on the early buyer column after news regarding 5G rollout. A look at the chart shows a strong move higher on good relative volume. They have a composite high volume node above at 56.29 that looks like a magnet. This move is likely to get follow through and they have a high IV rank. Suppose you wanted to create an idea from this…
|IDEA?||Long VZ stock, or short put credit spread (Feb 52.5/40 for .95 or greater)|
|RISK?||Trade below $52/share.|
|HOW WILL I KNOW THAT I’M RIGHT?||Acceptance above 52.80 brings more buyers and we quickly get above $54/share|
|HOW WILL I KNOW THAT I’M WRONG?||Trade below $52.50 in the next couple of sessions would likely negate the idea.|
TO FIND OTHER IDEAS LIKE THIS: