01/20/2022 Watchlist Chart
Watchlist for 01/20/2022
$FB – The stock traded up 0.45% during market hours but was down 0.03% after hours. During Wednesday trading sessions, FB was one of the few stocks that managed to close green despite the sea of red not only in tech but overall market as well. On the daily timeframe, its still trading within a downtrend and closed a grave stone doji as well. Overall still very bearish, but it didn’t break down lower compared to some other tech stocks. Keep an eye on the 320 level, if FB can break above with volume, it can test 326 to 330 level resistance. We will consider puts if FB fails 320 or 317 (Wednesday’s LOD), as it can test 316 to 314 level support. Below that can pullback down to 310 to 308 level support.
Contract Suggestion:
Above 320 level: 322.SC 01/ 21 (10.3K Volume @ 2.58) or 325C 01/21 (27.5K Volume @ 1.69)
Below 317 level: 315P 01/21 (8.4K Volume @2.21) or 310P 01/21 (6K Volume @ 1.07)
$DIS – The stock fell 1.42% during market hours and was down 0.28% after hours. On the daily timeframe, DIS is breaking out of the bear flag and closed a bearish inverted hammer candlestick pattern. It failed to fill the gap down from Monday and continues to find resistance at the 153 level for this week. If we see the market continuing to pullback, DIS has a chance to test the low back in December 2022 at around 142 level. Keep an eye on the 152 level, if DIS can break above with volume, it can test 153 to 154 (SODMA) level resistance. Above 154 level, it can test 157 to 161 level resistance. We will consider puts if DIS fails to hold above the 149 level, as it can pullback down to 145 to 142 level support.
Contract Suggestion:
Above 152 level: 152.SC 01/ 21 (11.7K Volume @0.56) or SSC 01/28 (2.SK Volume @0.94)
Below 149 level: 149P 01/21 (1.7K Volume @0.90)
$LCID – The stock traded up 2.09% during market hours but was down 1.60% after hours. On January 19th at 11:59pm EST, the lock up period for legacy founder shareholders can sell their shares. The majority state holder PIFS (Saudis) own close to 63% of LCID with a bout 1.2B shares out of 1.61B. This can ca use short-term selling pressure if the Saudi’s decides to sell a portion of their shares for profit and there was multiple bearish flow with this week and next week’s expiration. On the daily timeframe, LCID has been trading within a falling wedge but with this catalyst, it can cause a huge break down if there’s major liquidation of Saudi’s holdings into LCID. Keep an eye on the 40 level, if LCID can hold above this level, it can test 4 1to 43 (SODMA) level resistance. Above 43 level, it can test 44 to 48 level resistance. We will consider puts if LCID fails to hold above the 40 level, as it can pullback down to 36 to 33 {100DMA) level support.
Contract Suggestion:
Above 40 level: 41C 01/ 21 (11.6K Volume @ 1.40)
Below 40 level: 38P 01/ 21 (14.4K Volume @l.20) or 35P 01/ 28 (4.7K Volume @ 1.55)
$NFLX – The stock traded up 0.99% during market hours but was down 0.07% after hours. NFLX was another stock that managed to close green compared to the rest of the market. NFLX does have earnings on Thursday (01/20) after market closes with high IV. On the daily timeframe, NFLX has been trying to bottom out around the 510 level in a weak market. Treat NFLX has a lotto or day trade as it would be easier to play after earnings is reported. Keep an eye on the 521or back test 510 level, as it can test 534 (9DMA) to 537 level resistance. Above 537 level, it can test 547 (14DMA) to 550 level resistance. We will consider puts if NFLX fails to hold above the 510 level or rejection at 521 again, as it can test 500 to 487 level support. (IV is really high heading into ER, you will be IV crushed holding into ER if it doesn’t move crazy in one direction). You can play a straddle for ER if you want to play both sides.
Contract Suggestion:
Above 521or B/T 510 level: SSOC 01/ 21 (3.7K Volume @7.05) or 580C 01/ 21 (6.8K Volume @ 2.33)- Lotto
Below 510 level: SOOP 01/21 (1.8K Volume @12.50) or 480P 01/21 (857 Volume @6.40)
**NEWS TO LOOK OUT FOR THIS WEEK**
- Unemployment claims data on Thursday (01/20) at 5:30am PST/8:30 am EST