Sysco Corporation has broken the downward trendline and seems to be gaining momentum with the daily RSI just reaching near 70. However, the weekly RSI has plenty of room to go up for the longterm. For this stock option, I've purchased a long call strike 8/16/19 at the 70$ call for 2.35$ per 1 contract = 235$ investment. At expiration, the stock has to go above 72.35 to break even. Since the may contracts are pricing in about a 3$ move by the end of May, this means that the stock could be up more than 2.35$. If the stock reaches my price of 72.35 on may 31st, then the stock will make estimated 134$ = 57%. If the stock does not move up within 1 month, I would be interested in de-risking and opening a short call strike above to collect premium from time decay.
Commentaire:
trade was closed after stock went up 2 days in a row! I typically like to hold onto my position, but making 17% in 2 days was really nice. Closed trade and am now long TROW.