Hi, world! I love this time of year! I won three out of my four fantasy football games last week (I know, I agree, four leagues is way too many), last weekend was grand and this upcoming weekend I plan to go to “Shakespeare in the Park”. I am a big Shakespeare fan. I thought about doing this write-up as very poetic one, but thankfully decided against it (for now).
Symatec Squeeze
I entered this trade today based on one very interesting, yet simple criteria. I’m sure most of you reading this are quite familiar with John Bollinger’s indicator, Bollinger Bands®. Well, I was going through the technology sector and stumbled across an old friend, Symantec Corp. (SYMC).
The Chart Analysis
SYMC had one of the tightest squeezes I have seen in a very long time. I would dare to say it’s the lowest Bollinger Band width in the history of SYMC. I’ve seen many squeezes, but few as pretty as this.
Key Levels
Before going bullish, I wanted SYMC to close above the wick of the 9/8/14 candle. That’s exactly what happened on 9/10/14. Therefore, any pull back at all is buyable. Stop for me is placed at $24.10 and $27 is my ultimate target. If SYMC pauses at $25.45 (which it likely will) I intend to sell a covered call. Potentially a $26, $26.50 or $27 call for either Oct or Nov depending on when/what happens.
Bottom Line
Either way, I love the risk:reward for the trade and am super stoked to see how it plays out. Feel free to track this one with me and of course, let me know if you have any questions!
