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Nick Chiu
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Senior Options Trading Strategist at Optionity, MBA. Our trading approach starts with the fundamentals, then through short-term technical analysis, to finally leverage options trading (with the combination of long and short positions) to achieve favorable risk and reward ratio trading plays. Our... More
My company:
Optionity
My blog:
Optionity - specialized in Options Trading
  • Agilent – Technical Analysis And Options Play 04/04/2013 2 comments
    Apr 4, 2013 8:30 PM | about stocks: A

    The MACD (12, 26, 9) indicator is showing a bearish trend, but the MACD difference converged in the last trading day. The momentum indicator, RSI (14), is picking up but still indicating a slightly bearish lean at 45.66. Agilent is currently trading below its 50-day MA of $42.88 and above its 200-day MA of $39.54, as seen from the chart below.

    (click to enlarge)

    Source: StockCharts.com

    Options Trading

    For bullish investors, a credit put options spread of May 18, 2013 $37/$39 put or Aug 17, 2013 $36/$38 put can be reviewed. Credit put options spread will allow investors to gain some upside credit premium or to acquire the stock at a price below the current price upon options expiration.

    Note: Investors and traders are recommended to do their own due diligence and research before making any trading/investing decisions.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in A over the next 72 hours.

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Comments (2)
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  • alphabenn
    , contributor
    Comments (7) | Send Message
     
    Thanks Nick for your insights, may I ask why did you select A stock? Do you also use fundamentals to find stocks before applying technical analysis?

     

    cheers,
    Ben
    17 Sep 2013, 09:55 PM Reply Like
  • Nick Chiu
    , contributor
    Comments (678) | Send Message
     
    Author’s reply » Ben,

     

    Thanks for your comment.

     

    Yes, stocks are selected based on fundamental first, then technical is used to find support/resistance to setup favorable risk/reward option play.

     

    Nick
    18 Sep 2013, 08:51 AM Reply Like
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