Wayfair Looking Higher

BY LICIA LESLIE 

March 3, 2024

Hi Shoppers,

 

Wayfair (Ticker: W) has had a nice little rally with a boost from the earnings report.

 

The chart is looking bullish with more room to run higher:

It has just closed above the 50 and 200 day moving averages for four days now.

 

The next resistance level comes at the previous high just over $69.

 

I like the Mar15 calls:

I can buy the 60 calls with an implied volatility of 64.95 and sell the 70 calls with a 68.80 implied vol.

 

This puts edge in my spread as theoretically the IVs should come together.

 

Use a close below $58.70 as your stop loss.

 

Trade Review

 

The S&P 500 Mini SPX (Ticker: XSP) was up $4.00 on Friday. Those Mar08 510 calls were up 73% at the high. I am still bullish to $524.50.

 

Thanks for Reading … See You Next Tuesday,

Licia Leslie

Licia Leslie

Head of Technical Analysis

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Licia Leslie

Licia Leslie

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About the Author

Licia Leslie

Licia Leslie

Former CBOE floor trader and CIO at Karman Line Capital. Author of ‘The Option Traders Hedge Fund’ with over 30 years of options trading experience.

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