Hi Shoppers,

I am seeing a bullish hammer with confirmation in Alibaba (Ticker: BABA):

So, after trading lower off that shooting star candle on July 8 where BABA traded $125.84, it has traded down to $97.84 on July 15, which created a hammer.

BABA has traded higher the last two days off that hammer.

I think it could trade back up to the 200-day moving average (pink line) at $119.42.

I like the July 29 expiration dated options as earnings are Aug. 2.

I would like to buy an at-the-money call and sell an out-of-the-money call for a higher IV.

As you can see, the just-out-of-the-money calls aren’t really that pumped up. They are trading at a lower implied volatility than the at the money calls.

If you go further out, to the 118 and 119 calls, they are trading a higher implied vol.

I like the 106/118 call spread for $3.00 or less.

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Citigroup (Ticker: C) has traded higher since Sunday.

The high yesterday was $52.41. I called for it to go to $52.70 and possibly $54.20.

Chart still looks bullish and I think $54.20 is still in the cards.

Haliburton (Ticker: HAL) has also traded higher just shy of $30 yesterday.

I think it still has room to the upside and could trade to the 200 DMA at $30.91.

Thanks for Reading … See You At Trade Fest II!

Licia Leslie