Understanding The trade:
As an options trader my goal is to identify trend change and utilize a breakout strategy to leverage profit off of major trend changes with minimal risk. Even though this contract does not expire till 7/19 I will be looking to take profit by early july(see green box) as the rate of decay factor starts to come into play as the contract...
Morgan Stanley stock is going up with the banks in a strong upward rally. For longterm investors, you can buy into this recent strength and hold it for highly probable and profitable investment. I think this investment should be about the next 6 months -1 year. The technical analysis looks really good too because the relative strength index has broken the downward...
Earnings are always a crap shoot, but MS is like a little brother to GS. If GS missed, I expect MS to miss as well, and there's a gap underneath.
MS options premium is cheap, going all or nothing on April 18 puts. Safer play would be XLF puts.
Morgan Stanley had a pre earnings run ahead of its report today. The stock has pro trader activity in the mix. A gap up should be expected when this pre earnings technical pattern forms.
MS has earnings today and is gapping up in after hours (not a huge move but still could follow in pre-market). Volume profile is nice and clear with more then 800K shares and price action consolidated above 200sma with a smooth drifting pattern. Nice potential move up here touching hopefully 51
MS is approaching resistance and it resistance holds then I’ll look for price to retest support at $43.50 before it continues bullish. If it breaks resistance then I’d look for a retest of resistance before taking buys
Hi All,
MS should easily beat earnings since it's a busy IPO season and they are one of the major banks to underwrite the coming public offerings. I know that they are underwriting Uber's coming IPO.
Feel free to provide constructive critique. I have loaded up on May $45-$46 call options. I am also holding GS call options.
