!Warning!

Licia Leslie

Hi Shoppers,

You’ve heard the saying that once a stock trades past a certain point and is almost to a rounded number — say $100 — it is bound to get there?

Well, that does, in fact, usually happen

Check out the SPDR S&P Oil & Gas (Ticker: XOP) chart below. See how it has broken out and is heading to $100?

XOP closed yesterday at $94.83, and I think it is heading to the century mark.

I will buy the June 18 95-strike calls and sell the June 18 100-strike calls. I’ll pay up to $1.80 for this five-point spread.

As you can see, the implied volatility of each option is roughly the same, so I’m not getting that extra edge …

But since the 95s are more than $3, I would like to bring my cost down.

I will take my loss if the spread trades down to $1.20 and begin to take profits at the $2.90-$3.00 area.

Trade Review

- - AMC Entertainment (Ticker: AMC): I took off my last spread yesterday at $5.65 for a total profit of 115.
    AMD gapped open a buck and proceeded to trade up another $2. I waited and bought the June 04 82-strike calls for $1.35. They have closed considerably lower at $.51. If the stock does not follow through and trade higher today, I will get out immediately.
  - Quantumscape (Ticker: QS): I paid $1.50 for the June 18 26-/31-strike call spread, which closed just a tad lower, but the chart still looks to me like a bull flag.
  - I recommended the Uber (Ticker: UBER) June 18 50-strike puts paying $1.50, which weren’t looking so great. However! I still think the stock is rolling over and going lower. I will keep a close eye on these and get out if the stock trades above $52.
  - I still have the Taiwan Semiconductor (Ticker: TSM) Oct. 15 120-strike calls. I will sell the June 18 125-strike calls against them as the stock trades closer to $120 and these calls are trading over a dollar. After selling the April 16 130-strike calls and the May 21 125-strike calls, I am up 11% on this trade right now.