Play Editor's Note:
If you are a believer that this rally still has legs then looking to buy the dip is your strategy. If you think that the rally has run out of steam and it is back toward the 2009 lows then today might be your entry point for bearish positions. I'm going to mention both perspectives in tonight's new plays.
FYI: If you're looking for a bearish candidate I would check out ISRG. I think the stock looks poised to drop toward $90 and probably $85 again.
Goldman Sachs - GS - close: 111.11 change: -0.82 stop: 94.45
Why We Like It:
I am suggesting readers buy calls on a dip into the $101.00-100.00 zone but considering our stop loss at $94.45 you could make that entry point area wider from $101 to $95. If triggered at $101 our first target is $114.50. I'm setting an aggressive second target at $129.00.
If you are less optimistic and think financials will retest their lows then today looks like a bearish entry point for you. Consider put positions now with a stop loss above today's high. Your first target could be $100 with a secondary target in the $90-80 zone. This is just an alternative strategy and not an official newsletter trade.
BUY CALL APR 120 GS-DD open interest=15851 current ask $4.60 BUY CALL APR 110 GS-DB open interest=11244 current ask $9.15 BUY CALL APR 100 GS-DT open interest=15633 current ask $15.50
S&P 500 SPDR - SPY - close: 80.60 change: -1.62 stop: 74.90
Why We Like It:
If triggered at $78.25 our first target is $82.25. Our second target is 87.00.
Not an official trade but if you're bearish then today is your entry point with a stop loss above today's high. I would aim for the $76.00-75.00 zone as your first target. A more aggressive target would be the $71-70 region.
BUY CALL APR 76.00 SZC-EX open interest=16659 current ask $7.85 BUY CALL APR 80.00 SZC-EB open interest=19282 current ask $5.30 BUY CALL APR 84.00 SZC-EF open interest=24159 current ask $3.30