Stock touched 20 SMA
today, and this "first touch" or a close at/over 20 SMA
usually results in a move back down. Usually I look for RSI
to touch 50 or just cross it and then turn back down. Due to steep down trend the 14day RSI
may turn down before touching 50, or it may take another day if stock price stays up. See today's closing candle and watch RSI
, on daily and 30 min chart.
Strikes for puts can be 100, 95 (daily 10SMA), or 90.
Stops can be stock over 105 and over 106.
If stock moves higher you can switch to calls for 113, 120 targets on weekly chart.