80 Miles an Hour

 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

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.