Hello Investors,
The new year started off rough with an expanded range reversal candlestick pattern (bearish engulfing). We will likely get a little more selling pressure in the near term. Followed by one last push higher before a full correction in the late Feb/early March time frame in our view.
As for trading/investing opportunities. We are focused for now on adding some trade ideas. One that stands out is on Boeing (BA). We are using a targeted call butterfly strategy. We also highlighted a couple of other stocks (NET & CSCO) for the watchlist.
Bought a Boeing (BA) call butterfly for 2.65 debit as follows:
Buy to open: BA Feb 19th (monthly) 220.00 strike calls (ratio of 1)
Sell to open: BA Feb 19th (monthly) 240.00 strike calls (ratio of 2)
Buy to open: BA Feb 19th (monthly) 260.00 strike calls (ratio of 1)
Debit: 2.65
Max risk = 2.65; Max reward = 17.35
Have a great week!