10/20/2021 Watchlist Chart

10/20/2021 Watchlist Chart

 

Watchlist for 10/20/2021

 

$TSLA – The stock fell 0.67% and was down 0.16% after hours. TSLA was showing weakness relative to the market today but does report earnings on Wednesday (10/20) after hours closes. So far, premiums are leaning towards the upside with multiple bullish sweeps coming in since last week on the daily timeframe, TSLA is starting to form a dark cloud pattern and that pattern will confirm this pattern if the next candle closes red and makes a lower low. Playing earnings report is basically a coin flip so treat it as a lotto, market has priced in a 4Opt move. Keep an eye on the 867 level (9MA on the 1hr) or a back test of the 859 level, as it can test 878 level to 886 level resistance. We will consider puts if TSLA fails to hold above the 859 level, as it can pullback down to 851 to 840 level support.

Contract Suggestion:

Above 867 level or back test 859 level: 900C 10/22 (62.4K Volume @6.75)
Below 859 level: 820P 10/22 (5.9K Volume @6.85)

 

$NFLX – The stock traded up 0.16% during market hours but was down 1.33% after hours. NFLX reported a beat in their
earnings but had poor guidance. On the daily timeframe, based on the after-hours price, we saw some buyers step in
around the 624 level so that would be a great scalp entry if volume comes into retest 633 to 635 level resistance. Above
635 level, it can test 640 (tough resistance, was rejected multiple times on the daily) to 647 level resistance. We will
consider puts if NFLX fails to hold the 624 level, as it can pullback down to 615 to 610 level support.

 

Contract Suggestion:

Above 633 level or back test 624 level: 650C 10/22 (5.1K Volume @14.00) – price will change at open due to IV change
Below 624 level: GOOP 10/22 (8.4K Volume @5.25)

 

$BB – The stock traded up 14.06% during market hours but was down 0.69% after hours. On the daily timeframe, 88 broke out of the falling wedge and dosed near high of the day with above average volume. BB managed to close above the 200DMA (10.68) and the 100 DMA (11.12), which is very bullish for this stock. On the 1hr timeframe, its starting to build a flag as well. The best entry for BB would be a pullback to 11 before a move to 12. Keep an eye on the 11.58 or back test of 11, as it can test 12 to 12.26 level resistance. I will consider puts if BB fails to hold above the 11 level, as it can pullback down to 10.68 (200 DMA) to 10.19 (SODMA) level support. Beware, IV is very high so very volatile. (IV:159.81%)

Contract Suggestion:
Above 11.58 or back test 11 level: 12C 10/22 (27.1K Volume @0.49)
Below 11 level: 11P 10/22 (5.4K Volume 20.36)

 

$SPOT – The stock traded up 2.73% during market hours but was down 0.04% after hours. SPOT was showing relative
strength compared to the overall market and managed to close near high of the day. It managed to close a strong bullish
candle on the daily timeframe with above average volume. SPOT reports earnings on Wednesday (10/27) and will likely test the 200DMA (264.30) by Friday or early next week before reporting earnings if the market keeps this trend higher. Keep an eye on the 257 level, if SPOT can break above with volume, it can test 262 to 264 (2000MA) level resistance. We will consider puts if SPOT fails to hold above the 253 level, as it can test 250 to 246 level support.

Contract Suggestion:
Above 257 level: 260C 10/22 (2.4K Volume 22.00)
Below 253 level: 250P 10/22 (56 Volume @1.70) – wider spread

 

 

***NEWS TO LOOK OUT FOR THIS WEEK***

  • Unemployment claims data on Thursday (10/21) at 5:30am PST/8:30am EST

 

 

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