OSTK fell out of the bed in the Feb 24 market hours (big red candle past ema levels). But it has bounced to 75.12 in the pre-market session of February 25.
The stock is in conspicuous blue wedge, and could break up or down in the next several months. In the immediate future, a test of and bounce off of the $66 to $68 region would be quite bullish. Breaking below that level will lead the stock into the bearish red descending channel, within which you can see a descending wedge to watch for bullish short-term action in case the stock makes a large downside move into the channel.
Yesterday I took the gamble and sold cash-covered puts at $65 strikes expiring Friday, March 26. If the stock takes a dramatic fall into the red channel, I would short the stock and/or open bearish put spreads (keeping an eye on the red wedge). If the stock rebounds back toward the center of the blue wedge, I'll start planning to buy ATM straddles dated for late spring or summer.
The stock is in conspicuous blue wedge, and could break up or down in the next several months. In the immediate future, a test of and bounce off of the $66 to $68 region would be quite bullish. Breaking below that level will lead the stock into the bearish red descending channel, within which you can see a descending wedge to watch for bullish short-term action in case the stock makes a large downside move into the channel.
Yesterday I took the gamble and sold cash-covered puts at $65 strikes expiring Friday, March 26. If the stock takes a dramatic fall into the red channel, I would short the stock and/or open bearish put spreads (keeping an eye on the red wedge). If the stock rebounds back toward the center of the blue wedge, I'll start planning to buy ATM straddles dated for late spring or summer.