The JCI trade identified in today's Watchlist continues to pique my interest, mainly because of the strong trend.
A bull put options spread, created by buying the February $27.5 strike price and selling the $30 strike, would be profitable from a bit above $29 upward. A price of $29 is below near-term resistance, and when the stock fell to that resistance area today, the day after the bull signal, it promptly bounced back up to just below its opening price.
I don't like to buy bullish on a declining day. However, I'll be looking at JCI in the morning to see if it's worth getting into. The net premium on the bull put spread would be about 87 cents at the current price.
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