Author: Rick Pendergraft, Trades Of The Day

The underlying stock just hit the lower rail of a three month trend channel. November and January rallies produced returns of over 20% and 30%, so a similar move will reach our targeted return.

It’s been trending lower since November and it now faces two levels of resistance.

It’s my “Option Trade of the Day”.

It’s my “Option Trade of the Day”.

The underlying security hit the lower rail of a trend channel on Monday before bouncing yesterday. Similar RSI and stochastic setups to September and November proved to be good signals.