The option charts that I am going to post below are going to be for front month contracts. Now you may want to buy the options for next month if you do not want to get killed on time decay. However, the reason why I post the front month charts are because I am expecting to day trade these, so you may want to purchase the X price of the next month out to be on the safe side if you are more of an intermediate term option trader. Now the general rule is if the option play is going to be in effect for a 1 week to 2 weeks you purchase the front month. If the option play is expected to be longer than 2 weeks you want to purchase the 2nd month out. So sometimes I will post either one, however this week I believe both our going to be front months. Also the charts posted in the " Eagle Eye Options Alert" will include the daily chart showing you the big picture and the hourly chart showing some intraday action. Both charts will include analysis with the hourly chart showing some key channels to watch.Okay everybody, so the charts are below and lets see how this system works. It may have to be tuned a bit so bear with me, but we will get it working right on point once we get get some live market action going on some of our 1st test run option charts.
XOM Daily Stock chart
XOM Daily( July 09 70x put )
XOM 60 min
XOM Strategy- 1st target= $3.59
Limit entry=$2.00
Stop Loss= $1.85
Notes= She is kind of high priced right now so I would like for her to get a pullback. However, if the energy markets start off weak going into next week, I will be a buyer of the double top breakout.Use the sky blue trendline as a great entry if she pulls back.
SRS( Daily Stock Chart )
SRS Daily( July 21x Call )
SRS 60 min
SRS Strategy- 1st target= $1.80
Limit entry=$1.15
Stop Loss= $1.00
Notes= She closes near the highs, and could gap up tomorrow in the A.M. I would be a buyer on the return to the dotted yellow line on the 60 min chart. SRS does look pretty strong stock wise, so she may not return to the lows so you will have to play it by ear. If the markets do bounce early next week though she would be a good buy back around that area.
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