03/22/2022 Watchlist Chart
Watchlist for Tuesday, 03/22/2022
$BABA – The stock fell 4.35% during market hours and was down 0.84% after hours. During Monday’s trading sessions there were some unusual call options for the 103Cs and 110Cs on those weekly expiration over 300k each despite BABA closing a doji on the daily. It was then announced that BABA will repurchase shares from 15B to 25B and appointed a new independent direction to its board. The repurchase shares news is huge and should expect a pop during Tuesday’s sessions. Overall the daily timeframe is still very messy on BABA but so far buyers stepping up to buy the dip around the 97 and 100 level support. Keep an eye on the 106 (HOD on Monday) or backtest 100 level, as it can test 110 to 114 (near 50DMA) level resistance. Above 114 level, it can test 119 to 123 level resistance. We will consider puts if BABA fails to hold above the 100 level, as it can pull back down to 97 to 95 level support.
Above 106 or B/T 100 level: 110C 03/25 (20.4K Volume @1.53)
Below 100 level: 97P 03/25 (1.9K Volume @1.48)
$BIDU – The stock fell 1.58% during market hours but was up 0.19% after hours. There wasn’t much flow on BIDU compared to BABA but that BABA news should help pop some Chinese stocks with it. On the daily timeframe, BIDU closed a doji as well as an inside day on the weekly timeframe. If BABA pops on Tuesday, BIDU should follow. Keep an eye on the 146 level, if BIDU can hold above this level, it should test the 50DMA and 100DMA near that 152 level to 154 level resistance. Above 154 level, it can test 160 (200DMA) to 163 level resistance. We will consider puts if BIDU fails to hold above that 146 level, as it can pull back down to 142 to 140 (9DMA).
Above 146 level: 150C 03/25 (469 Volume @3.45)
Below 146 level: 140P 03/25 (738 Volume @2.54)
$ZS – The stock fell 0.83% during market hours and was down 0.03% after hours. On Wednesday (03/23), ZS will be participating in the Wolfe Research Virtual Software Conference which is like the “march madness” but for this sector. There was some flows that came in last Friday on those 240Cs totaling above 100k. Cybersecurity stocks also popped on headlines news that came on Monday. On the daily timeframe, ZS has been trading within a larger flag and has continued to bounce off the lower flag trend-line and managed to close a bullish pin bar off the 9DMA (214.20). It was showing relative strength compared to the overall market as it close near high of the day. Keep an eye on the 223 (20DMA), if ZS can break above with volume, it can test 226 to 230 level resistance. Above 230 level, it can test 238 to 244 (50DMA) level resistance. We will consider puts if ZS fails to hold above the 220 level, as it can pull back down to 214 (9DMA) to 208 level support.
Above 223 level: 230C 03/25 (4.7K Volume @3.50) or 240C 03/25 (3.1K Volume @1.66)
Below 220 level: Avoid put option, low volume, and wider spreads.
***NEWS TO LOOK OUT FOR THIS WEEK***
- Unemployment claims data on Thursday (03/24) at 5:30 am PST/8:30 am EST