Speculating on upside breakout for KR / Fundamental Strength
+ 10 JUL15 77.5 CALL (21 Days to Exp., Imp. Vol 15.84%, Delta .10, Position Delta 95.25)
Well KR has been slowly but steadily accumulating itself into an ascending triangle pattern, which is one of my preferred breakout patterns showing buy orders building up positions prior to a breakout (In this case aiming towards a bullish breakout). This is more of a trade rather than an investment position hence the near term expiration in the options, so I'll be looking to exit the trade if price reaches the $77-$80 levels. Yesterday P/A did form a inverted hammer / dragon fly doji which shows the sellers inability to push price lower. When you look at the volume you can see that there is above average selling the past week but they haven't been able to push lower, which tells me that we can be in for a short squeeze soon.
As many know you can look into the derivative market to look for clues on what the institutional side of the market is doing. And it is something I always check for a little extra peace of mind when entering a trade hehe. Largest options trade for today so far is +100 JUL 15 72.5 CALLS . Which is roughly the equivalent of +10,000 Shares, which isn't large per say, but is something to note.
Exiting at a loss: If price on the W1 chart closes below the $70 level.
Notes: Do note that we have a failed Head & Shoulders pattern. And KR did raise its dividend by 13.5%, and buying back $500 Million shares, and announced a 2-for-1 stock split.
Cheers, happy trading. =)
Well KR has been slowly but steadily accumulating itself into an ascending triangle pattern, which is one of my preferred breakout patterns showing buy orders building up positions prior to a breakout (In this case aiming towards a bullish breakout). This is more of a trade rather than an investment position hence the near term expiration in the options, so I'll be looking to exit the trade if price reaches the $77-$80 levels. Yesterday P/A did form a inverted hammer / dragon fly doji which shows the sellers inability to push price lower. When you look at the volume you can see that there is above average selling the past week but they haven't been able to push lower, which tells me that we can be in for a short squeeze soon.
As many know you can look into the derivative market to look for clues on what the institutional side of the market is doing. And it is something I always check for a little extra peace of mind when entering a trade hehe. Largest options trade for today so far is +100 JUL 15 72.5 CALLS . Which is roughly the equivalent of +10,000 Shares, which isn't large per say, but is something to note.
Exiting at a loss: If price on the W1 chart closes below the $70 level.
Notes: Do note that we have a failed Head & Shoulders pattern. And KR did raise its dividend by 13.5%, and buying back $500 Million shares, and announced a 2-for-1 stock split.
Cheers, happy trading. =)