$450 huge price area on SPY.
QQQs have key level of $370 on deck.
Market today certainly did not continue the earlier theme of up up and away from earlier in the week but it was a very controlled down day where most of the move occurred early and kind of stayed there as of writing this article. Today’s trade idea is on LX ( LexinFintech Holdings Ltd ). If the pricing is below $7.00 , I will buy 100 shares and then I am going to STO $7.50 call and BTO $5 put and will STO $7.50 call expiring Oct 15. This trade will generate approx. $1.80 in credit. Potential loss in this trade is $70.00 on the spread as well as the cost of the stock. Max profit will be if the stock closes above $7.50. In which case I make the $7.50 less cost of the stock as well as keep the premium received.
The stock price of $AMZN (Amazon.com Inc. LTP $3,316.00) ended at an interesting point (up 0.51%) on Thursday when overall the broader market ended almost at day’s low. The stock recently took a beating when it suddenly fell below the 50EMA by losing almost $300.00 in a day. However, after that, it got a support level at $3,173 and since then it has been in a recovery mode. Today it crossed the 20EMA and now looking forward to touch the 50EMA from below. On the upside if it keeps the momentum with RSI, Stochastics and MACD aiming higher from the recent oversold region, it could potentially reach further up to previous highs of $3700 in the next few days.
On the other hand, the 50EMA could prove to be a stiff resistance at this level and if the broader market is on a freefall correction mode then it could reach the immediate support of $3,173 once again to test the level further.