Top 5 Trade Ideas: Week Of November 26, 2012
Dragonfly Capital | Nov 27, 2012 01:36AM ET
Capital One Financial (COF) has made a "V" recovery off of a bottom at 54.45, on the 200 day Simple Moving Average (SMA). Now at resistance at 59 and the 20 day SMA, a push through has resistance higher at 60.40 and 61.78 with free air above. Support lower comes at 57.45, 56.80 and 55.30 before 54.45. The rising Relative Strength Index (RSI) and the Moving Average Convergence Divergence indicator (MACD) about to cross to positive both support more upside price movement.
Trade Idea 1: Buy the stock on a move over 59 with a stop at 58.
Trade Idea 2: Buy the December 60 Calls (offered at 85 cents late Friday) on the same trigger.
Trade Idea 3: Buy the December 60/62.5 Call Spreads (69 cents) on the same trigger.
Trade Idea 4: Sell the December 55 Put (32 cents) now.
Trade Idea 5: Buy the December 60/62.5 Call Spread selling the December 55 Put (37 cents).
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 Original post
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