06/08/2022 Watchlist Chart
Watchlist for Wednesday, 06/08/2022
On Tuesday, $SPY gapped down to match the drop in futures. Previously, We mentioned that net premiums have recovered and a huge bullish trade came in. SPY rallied after the open and closed at about +1% for the day.
Before the close, We mentioned staying hedged into tomorrow and that the MOC imbalance was $300M to the sell-side. Futures have fallen about -0.50% since.
$PANW
Contract Suggestion:
Above 531 level: 540C 06/10 (1.3K Volume @ 3.50) or 550C 06/10 (323 Volume @ 1.65)
Levels Above 531: 540 (100DMA), 550 (50DMA), 557, 590
Below 523 level: 510P 06/10 (78 Volume @ 3.70) – Wide spreads on puts
Levels Below 523 (200DMA): 505, 490 (20DMA), 472, 460
Analysis
The stock traded up 2.53% during market hours but was down 0.13% after hours. Cybersecurity was strong during Tuesday’s trading sessions and continues to hold above the 200DMA (523.25) which is a bullish sign. Once PANW can close above the 50DMA (551.10), it can set up for a nice reversal back to highs. PANW closed a strong bullish engulfing candle on the daily timeframe, despite the low volume melt-up. Since the beginning of June 2022, the flow has been mostly towards the 550Cs this week.
$CRWD
Contract Suggestion:
Above 181 or B/T 173 level: 185C 06/10 (6.1K Volume @ 1.75)
Levels Above: 187 (50DMA), 194, 200, 208
Below 173 level: 170P 06/10 (959 Volume @ 2.39) or 165P 06/10 (928 Volume @ 1.35)
Levels Below: 166, 158
Analysis
On the daily timeframe, CRWD broke out of the ascending triangle and has been riding the daily moving averages as support upwards. Each pullback towards those daily moving averages has been bought up and there was significant flow into the 185 calls that came in towards the end of the day.
$MRNA
Contract Suggestion:
Above 146 level: 150C 06/10 (1.8K Volume @ 2.11)
Levels Above: 148 (50DMA), 150, 153 (100DMA), 160
Below 143 level: 140P 06/10 (586 Volume @ 1.97)
Levels Below: 138, 135, 130, 128
Analysis
On the daily timeframe, MRNA has been forming an inverse head and shoulder pattern with a key break out at above 153 level. So far MRNA has been riding the daily moving averages as dynamic support and is curling up for a 50DMA (148.19) test soon. The weekly is still an inside week until it can break above 149 or below 131.
$TGT
Contract Suggestion:
Above 158 level: 160C 06/10 (13K Volume @ 0.85)
Levels Above: 162 (9DMA), 165, 167-169
Below 156 level: 155P 06/10 (7.3K Volume @ 1.85)
Levels Below: 153-150, 146
Analysis
On the daily timeframe, TGT gapped down but the dip was quickly bought up to close a strong bullish candle with above average daily volume. This can be seen as a double bottom on the daily near the 146 level. The 9DMA (161.75) continues to act as a dynamic resistance so it’s harder to swing longer calls unless it can recapture and hold above this level. The weekly timeframe, providers a stronger picture of a bottom trying to form as the weekly 200MA (150.04) has been providing that bounce support. There was significant flow into the 150P and 157.5C on the weekly expiration.
***NEWS TO LOOK OUT FOR THIS WEEK***
- Unemployment Claims Data on Thursday (06/02) at 5:30 am PST/8:30 am EST
- Core CPI for May 2022 on Friday (06/10) at 5:30 am PST/8:30 am EST