Daily Commentary: 1Option

Regal Helpdesk1Option Commentary

Buy Calls On Tech Stocks – Use This Level On QQQ As Your Stop


Posted 9:30 AM ET – Yesterday the market probed for support and the SPY bounced before it challenged $248. Tech stocks have been weak relative to the S&P 500 and we are seeing a rotation out of this sector and into energy/retail. The QQQ bounced just above the 100-day moving average and I like these stocks with earnings season approaching.

I am going to buy November call options on some of the tech leaders this morning. I will use QQQ $141.70 as my stop on a closing basis.

Swing traders should own calls as long as the QQQ stays above that level. For stocks that are not QQQ components, use SPY $248 as your stop on a closing basis.

The news has been very light. Apart from North Korea, the macro backdrop is bullish.

Day traders should look for opportunities to get long this morning. I don’t believe we will see much of a dip.

Yesterday buyers pulled bids and they gauged profit-taking. The volume and that is bullish. Stocks found support above major levels and the bounce this morning could gain traction.

Stay long.

Market commentary provided by OneOption, LLC a firm separate from and not affiliated with Regal Securities L.P. Regal Securities L.P. has not participated in the creation of the content, and does not explicitly or implicitly endorse the content

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