Take A Chance on Me – Chart Trade Idea

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If you change your mind, I'm the first in line
Honey I'm still free
Take a chance on me If you need me, let me know, gonna be around
If you've got no place to go, if you're feeling down
If you're all alone when the pretty birds have flown
Honey I'm still free
Take a chance on me
Gonna do my very best and it ain't no lie
If you put me to the test, if you let me try

Take a chance on me
(that's all I ask of you honey)
Take a chance on me

When I look at this chart, this is the song that comes to mind. No, the ticker isn't $ABBA...it's $ESI. Here's the chart I'm looking at.

esi123

The options I like are the FEB $30 calls, which are currently trading for $.51. I may also go out another month where the $35 calls are asking $.45.

The stock has been hammered recently after hitting fresh 52 week highs at over $45 a share. A recovery short term to $30 is a likely scenario and I think that rally could come through the $35 level as well. The stock remains oversold and at strong support.

I will be a buyer of $30 FEB monthly calls tomorrow and take a chance on this stock.

esi4

Profile photo of uranium-pinto-beansKnown to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

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