Check out this beauty of a stock chart shown to me by one of our Option Pit members:
What is it?
Why it’s General Motors (Ticker: GM).
GM has been in a downtrend since its high of $64.30 on June 7, trading down to $47.07 on Monday and creating a beautiful hammer.
Yesterday’s trade supports the reversal with a confirmation candle to the upside.
I think GM can trade back up to $53.50 and possibly to $55.00.
Looking at the options, I like the Sept. 10 expirations cycle with 18 days to go:
I will pay $1.05-$1.10 for the Sept. 10 50-strike calls.
If these calls trade down to $.70, I will take my losses. On the upside, I will begin to take profits when these trade towards $2.00.
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Thanks for Reading … See You Next Tuesday!