Another great video from Pete Najarian in "The Take": www.youtube.com/watch?v=4v04dco3... Calls out $HOG call buys. So I go and pop open a chart and what do you know, a nice setup...
$HOG is coiling and getting ready to pop it seems. When something coils it can go in either direction, and recent action could suggest a continuation down however, call buying may indicate upside (also could be a hedge). I happen to agree with the narrative Pete lays out in "The Take" - outdoors plays are interesting in this environment -just look at stocks like $WGO or $CWH- and $HOG is an interesting play here. Selloff at close provided a nice entry into the calls mention in the video above below cost paid. Keep an eye out on the tight coil forming over past few days with pivot point highs of $25.50 and PP lows of $24.30; in fact, getting very specific, intraday lows of $24.60 are another good short term support level to watch.
I am in this trade.
$HOG is coiling and getting ready to pop it seems. When something coils it can go in either direction, and recent action could suggest a continuation down however, call buying may indicate upside (also could be a hedge). I happen to agree with the narrative Pete lays out in "The Take" - outdoors plays are interesting in this environment -just look at stocks like $WGO or $CWH- and $HOG is an interesting play here. Selloff at close provided a nice entry into the calls mention in the video above below cost paid. Keep an eye out on the tight coil forming over past few days with pivot point highs of $25.50 and PP lows of $24.30; in fact, getting very specific, intraday lows of $24.60 are another good short term support level to watch.
I am in this trade.
Comment:
WOW - well this coil certainly squeezed, just to the downside. Stopped out at PP lows basically at open. Please not this trade is likely a loser due to technical breakdown. Likewise, volume yesterday was north of 40k July2 $26.50 calls. At open today OI is about 16k - looks like buyers went for a roundtrip today. Will not be reentering.