The Labor Day weekend ends a week and a half long travel vacation for me. I have been a lot less active yet still following my favorite names and starting to look at positions for next week. Be weary though, markets are closed on Monday so we have a shortened trading week. Not ideal for weekly options. Here is what I am watching and trading plans.
This name has been consolidation about its break out from the 1st of August. With volume coming down below average and price trading at the top of the range, I think this name is poised for a break out on a nice volume day. Above $244 on more then 2 million daily average volume would be my entry.
I am watching this name purely on momentum. I traded this one successfully last week based on the support at $40. It held and has continued to go higher since the sell off on Tuesday and even continues higher in the Pre Market today. High volume in the 42 call strike price had peaked my interest for more upside into next week. I initialed calls at the strike price for .66 a contract.
This has been a nice trade to the upside the last few weeks. But since the close below $500, I think it will be a tough one to get back above. With an announcement looming, I don't see much to get it above $500. A fall out of this wedge as well as a small bear flag the last week could see lower prices before the actual release of the new iPhone. I am always careful though with this name because it can move fast against you before you even realize it.
I am looking forward to the start of the fall trading season. Next week should see some increased volume with more players coming back from summer hiatus. Although I am not expecting much of an increase since it seems many of the players stuck around for the summer rally. Happy Labor Day everyone and happy trading.