Top Trade Ideas - Week Of September 15, 2014: Workday
Dragonfly Capital | Sep 15, 2014 08:08AM ET
Here is your Bonus Idea with links to the full Top Ten:
Workday, Ticker: WDAY
Workday (NYSE:WDAY) has been making higher lows and higher highs since finding a bottom in May. The price action is forming an ascending triangle that carries a target to 120 on a break higher. The Bollinger bands are channeling the price higher with the 20 day SMA as support. The RSI is in the bullish zone but pulling back in the short term with a MACD that is level. There is resistance higher at 92 to 93.60 followed by 96 and 100 before 105 and 109 with the prior high at 116 above that. Support lower may come at 85.75 and 82 before 77.40. Short interest is high at just under 10%. Option open interest this week is heaviest at the 95 Strike.
Trade Idea 1: Buy the stock on a move over 93.60 with a stop at 90.60.
Trade Idea 2: Buy the September 92.5 Calls (offered at $1.25 late Friday).
Trade Idea 3: Buy the September 92.5/95 Call Spreads (85 cents).
Trade Idea 4: Buy the September 92.5/95/97.5 Call Butterfly (75 cents).
Trade Idea 5: Buy the September/October 95 Call Calendar ($2.10).
Trade Idea 6: Buy the September/October 95 Call Calendar and sell the October 85 Put (50 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 Market Macro picture reviewed Friday which, heading into September Options Expiration Week sees the equity markets looking tired and ready for a pullback. Elsewhere look for Gold to continue lower while Crude Oil does the same. The US Dollar Index is strong and looks to continue higher while US Treasuries are biased lower. The Shanghai Composite is also strong and biased higher with Emerging Markets looking to continue their pullback. Volatility looks to remain subdued keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. Their charts show more consolidation in the zone for the IWM and a possibility of consolidation or even a pullback for both the SPY and QQQ. Use this information as you prepare for the coming week and trad’em well.
Disclosure: 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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