BY LICIA LESLIE
March 13, 2024
Hi Shoppers,
Wayfair (Ticker: W) has been trading in what the Japanese call a box range.
A box range is a consolidation or coiling of the stock price in a trading range.
Here it is on the chart:
W is now beginning to trade to the upside, continuing the trend, as it trades outside the box.
It closed above the top of the range which is most important.
I will be looking for follow through in the stock trading higher this morning, that will be my confirmation.
Shopping for calls, I like the Mar28 expiration:
There is a nice skew in the calls meaning I can buy the 63 calls at an implied volatility of 64.74 and sell the 71 calls at an implied vol of 69.63.
This puts edge in my spread.
The next level of resistance comes in at $68.65.
Use a close below $60 as your stop loss.
Thanks for Reading … See You Next Tuesday,
Licia Leslie
Licia Leslie
Head of Technical Analysis
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