Taking advantage of this "little" dip here to initiate a covered call in this little, high implied volatility bugger (at some point, I'll make the move to "quality" ... ).
Bought Shares at 4.73
Sold Oct 21st 5 call
Whole Package: 4.40
Max Profit: $60
Buy Shares at 4.62
Sell Oct 21st 5 call
Whole Package: 4.36
Max Profit: $64 (if called away at 5)
Notes: The ROC metrics are good here; the chart is not. The underlying is at highs, so it might be beneficial to wait for a pullback to initiate a play. By the same token, there is room to the upside (albeit small to next ZigZag indicated...
GNW has had consistently bad earnings since 2014 until about Q1 of this year where the distressed financial company posted profits and shedding of toxic assets. MACD bullish divergence, Ichimoku crossed above kumo on the daily chart, we might see a turn around and long term climb to 6+. Keep in mind this is a fortune 500 company trading for $3.
Large selling volume on GNW on last 15 min. of the day. Trend beginning to go slightly bullish after a healthy earnings report yesterday.
Apparent negative divergence in RSI formed today as well as the MACD falling off a cliff on the 15 MIN chart.
Will think about entering a short position on paper if price can break through next support level around 3.47-3.45.
GNW recovery play, Long at 3.08 as of 6/14/2016, target 6.50 or more by this time next year. GNW was hit by horrible guidance and earnings the previous year and is just starting to recover since the last earnings early May. It has stopped the bleeding in its LTC unit and is poised to make a turnaround. Rate hikes should help GNW as well. 82% of stock float is held...
J HOOK PATTERN ON MONTHLY-NEXT LEVELS 50 MA AND CLOUD SEE IN OUR BOOK ON AMAZON SAME NAME EXIT STRATEGIES-STOC AND RELATIVE STRENGTH GOOD-CLOUD IS THIN-USE LIMIT ORDERS TO ENTER-STOP LOSS 5 EMA ON MONTHLY
Genworth recently took a nosedive on concerns related to one time expenses, a good will impairment and a capital reserve charge. Another capital reserve charge is possible for the next quarter. All in all, this company is trading at a wide discount to long term earnings power. Through a sum of parts analysis, we have currently valued the business at $14 a share....