Hi Shoppers,
Today I am looking at the Lowes Companies (Ticker: LOW) stock chart:
As you can see LOW has had quite the run up from its low of $182.08 on August 17th.
And more recently it has run from $201.58 on October 4th to close Friday at $219.16.
Friday’s candle has formed a doji which could be signaling a pullback in LOW.
Looking at the options I like the Oct22 expiration:
If LOW opens and trades lower, I like buying the Oct22 217.50-strike puts with an implied volatility of 18.39 and selling the 212.50-strike puts with 19.78 implied vol.
I would pay $1.20-$1.25 for this ten point spread with a week to go.
I will take my losses down 30% at $.85.
LOW looks like it could trade back down to $212.50 so I will begin profit taking at the $2.50 level.
Enjoy your weekend.
Thanks for Reading … See You Next Tuesday!
Licia Leslie