SPY needs to retake $440 for a pop back to highs.
QQQ have key support level of $365.
After the recent split $NVDA ( Nvidia Corp) is still appearing strong with the price. Even though the volume is comparatively lower, the stock is bullish with 5 EMA crossing over 20 EMA, ahead of the Earnings on Aug 18. The RSI and Stochastics both are still rising and below overbought region.
However, on the downside the stock could go up to 180 if it doesn’t hold the current price and profit booking starts prior to earnings announcement. These are new price territories for $NVDA as the stock was split last week and hence there is a potential downside with thin volumes.
The banks have been a perplexing sector for the last few weeks and Citibank “C” is one I have my eye on. This is a simple idea of playing for the first close above the 21 EMA since June 8. If I see that before Friday, the idea would be to buy a $68 call in the August monthlies. I would look for a stop on a close below the 8 EMA and my profit target would be a test of the 50 day SMA. As always, my max risk is what i pay for the call.
I will be looking to initiate a bullish position on CPB ( Campbell Soup ) , It has been in very tight consolidation for the past 7 weeks with support around 44.00 and resistance around 46. Stochastics on the daily as well as the MACD are suggesting possible upside potential. I will be looking to set up a broken wing butterfly credit spread with my bias to the upside. I am going to place a 44/40 put credit spread and sell a 44/45 call spread if the pricing is around the $44.00 area on Thursday open.
I should be able to get around $1.45 credit for being filled. This will be a no risk trade to the upside and give us downward protection to $42.55. I would be looking to take this trade off for around $1.05 debit. To recap I make profit if stock stays above $42.55 and max profit will be if the stock closes around the short strikes. I’ll be using $400 in margin but bringing in around $145 on entering the trade . So I’m are potentially risking $255 to make $145.