Yesterday trade possibilities are starting to turn into reality.
The $X trade worked to near perfection. $AGN has just breached $225 to the upside, and $EBIX is moving up over 2% after releasing tremendous news this morning. That leaves $MOS.
Much like $X, $MOS looks to be turning the corner. It's being stubborn and had pulled back to $23. Could it keep falling? Of course, there is always risk in the market. But I do like the chart here, and I am trading for a sharp reversal.
The Weekly calls remain priced for a stock that will trade lower, or flat the next few days.
- MOS $23 weekly calls $.24
- MOS $23.50 weekly calls $.07
- MOS $24 weekly calls $.02
It's impossible to know the exact timing of the reversal, if it happens at all. $X was sitting in negative territory yesterday with a similar chart pattern. It turned around sharply and rallied $2 off the lows.
$.29 calls went to $1.80 in less than a full trading day. I don't think we will see the same explosive move, but I do think the chart is turning and the options offer a respectable risk/reward for a potential move higher.